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Family income and child outcomes in Canada

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  • Martin Dooley
  • Jennifer Stewart

Abstract

. A positive relationship between income and child outcomes has been observed in data from numerous countries. A key question concerns the extent to which this association represents a causal relationship as opposed to unobserved heterogeneity. We use data from the National Longitudinal Survey of Children and Youth to implement a series of empirical strategies for estimating the existence and size of the effect of income on three measures of cognition. Our results indicate that the effect of income on these outcomes may well be positive, but that it is likely to be smaller than conventional estimates. JEL Classification: I10 Revenu des familles et comportement des enfants au Canada. Il existe une relation positive entre le revenu des familles et les comportements des enfants dans les relevés statistiques de nombreux pays. Une question centrale demeure: jusqu’à quel point est‐ce que cette corrélation représente une relation causale par opposition à du bruit? Les auteurs utilisent l’Enquête longitudinale nationale sur les enfants et les jeunes (ELNEJ) pour mettre en place une série de stratégies empiriques pour calibrer l’existence et la taille de l’effet de revenu sur trois mesures de cognition. Les résultats montrent que l’effet de revenu sur ces comportements peut fort bien être positif mais qu’il est vraisemblablement plus faible que ce que suggèrent les évaluations conventionnelles.

Suggested Citation

  • Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 898-917, November.
    • Handle: RePEc:wly:canjec:v:37:y:2004:i:4:p:898-917
    DOI: 10.1111/j.0008-4085.2004.00253.x
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    References listed on IDEAS

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    1. Maurin, Eric, 2002. "The impact of parental income on early schooling transitions: A re-examination using data over three generations," Journal of Public Economics, Elsevier, vol. 85(3), pages 301-332, September.
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    5. Martin Dooley & Jennifer Stewart, 2004. "Family income and child outcomes in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 898-917, November.
    6. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, vol. 77(2), pages 155-184, August.
    7. Korenman, Sanders & Miller, Jane E. & Sjaastad, John E., 1995. "Long-term poverty and child development in the United States: Results from the NLSY," Children and Youth Services Review, Elsevier, vol. 17(1-2), pages 127-155.
    8. Janet Currie, 2001. "Early Childhood Education Programs," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 213-238, Spring.
    9. Anderson, Patricia M. & Butcher, Kristin F. & Levine, Phillip B., 2003. "Maternal employment and overweight children," Journal of Health Economics, Elsevier, vol. 22(3), pages 477-504, May.
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    11. Martin Dooley & Ellen Lipman & Jennifer Stewart, 2005. "Exploring the Good Mother Hypothesis: Do Child Outcomes Vary with the Mother's Share of Income?," Canadian Public Policy, University of Toronto Press, vol. 31(2), pages 123-144, June.
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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