IDEAS home Printed from https://ideas.repec.org/a/wly/canjec/v52y2019i4p1401-1432.html
   My bibliography  Save this article

Unequal opportunities and public policy: The impact of parental disability benefits on child postsecondary attendance

Author

Listed:
  • Kelly Chen
  • Lars Osberg
  • Shelley Phipps

Abstract

This paper uses Canada's National Longitudinal Survey of Children and Youth to examine whether greater cash transfers available to parents with disabilities when their child was aged 5 to 15 increase the chances that the child will attend postsecondary education (PSE) as a young adult. We exploit differences across provinces and over time in the generosity of provincial disability benefits programs in Canada and find that higher disability benefits when the child was aged 5 to 15 years increase the probability that he or she will have attended or be attending PSE by age 19 to 25. The estimated effect size increases with the severity of the parental disability and the number of disabled parents. Because lower disability benefits significantly worsen performance of public school aged children on standardized math tests and elevate anxiety symptoms, one plausible pathway from disability benefit levels to PSE attendance may be through the cognitive and non‐cognitive skills children acquire by the age of 15. We conclude that the level of disability transfers available early in a child's life mitigates the impact of having a parent with a disability as a source of inequality of opportunity and of unequal probability of PSE participation. Inégalités des chances et politique publique : conséquences des prestations d'invalidité des parents sur la fréquentation postsecondaire des enfants. En s'appuyant sur l'Enquête longitudinale nationale sur les enfants et les jeunes (ELNEJ) au Canada, cet article tente de déterminer si de meilleures prestations d'invalidité, versées aux parents handicapés entre le cinquième et le quinzième anniversaire de leurs enfants, augmentaient les chances de ces derniers de poursuivre des études postsecondaires en entrant dans l'âge adulte. Nous avons exploité les différences entre les provinces et dans le temps pour évaluer la générosité des programmes régionaux canadiens en matière de prestations d'invalidité, et avons remarqué que plus ces dernières étaient élevées entre 5 et 15 ans, plus les enfants avaient de chance de poursuivre ou d'avoir poursuivi des études postsecondaires entre 19 et 25 ans. L'ampleur de l'effet estimé augmente en fonction de la gravité du handicap parental et du nombre de parents handicapés. Si l'on considère que des prestations d'invalidité plus faibles détériorent significativement les performances des enfants aux tests de mathématiques standardisés dans les écoles publiques tout en aggravant les symptômes d'anxiété, l'un des mécanismes plausibles corrélant le niveau de prestations d'invalidité et la fréquentation postsecondaire pourrait résider dans l'acquisition de compétences cognitives et non‐cognitives avant l'âge de 15 ans. Notre conclusion est que le niveau de prestations d'invalidité offert précocement dans la vie d'un enfant avec un parent handicapé pouvait réduire les inégalités des chances et d'accès aux études postsecondaires.

Suggested Citation

  • Kelly Chen & Lars Osberg & Shelley Phipps, 2019. "Unequal opportunities and public policy: The impact of parental disability benefits on child postsecondary attendance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1401-1432, November.
  • Handle: RePEc:wly:canjec:v:52:y:2019:i:4:p:1401-1432
    DOI: 10.1111/caje.12408
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/caje.12408
    Download Restriction: no

    File URL: https://libkey.io/10.1111/caje.12408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Campolieti , Michele & Gomez, Rafael & Gunderson, Morley, 2009. "Volunteering, Income Support Programs and Disabled Persons," CLSSRN working papers clsrn_admin-2009-16, Vancouver School of Economics, revised 16 Feb 2009.
    2. Pierre Lefebvre & Philip Merrigan & Matthieu Verstraete, 2008. "The Effects of School Quality and Family Functioning on Youth Math Scores: a Canadian Longitudinal Analysis," Cahiers de recherche 0822, CIRPEE.
    3. Petra E. Todd & Kenneth I. Wolpin, 2007. "The Production of Cognitive Achievement in Children: Home, School, and Racial Test Score Gaps," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 91-136.
    4. Anna Aizer & Shari Eli & Joseph P. Ferrie & Adriana Lleras-Muney, 2014. "The Long Term Impact of Cash Transfers to Poor Families," NBER Working Papers 20103, National Bureau of Economic Research, Inc.
    5. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    6. Randall Akee & William Copeland & E. Jane Costello & Emilia Simeonova, 2018. "How Does Household Income Affect Child Personality Traits and Behaviors?," American Economic Review, American Economic Association, vol. 108(3), pages 775-827, March.
    7. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    8. Richard Burkhauser & Mary Daly & Duncan McVicar & Roger Wilkins, 2014. "Disability benefit growth and disability reform in the US: lessons from other OECD nations," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-30, December.
    9. David Roodman & James G. MacKinnon & Morten Ørregaard Nielsen & Matthew D. Webb, 2019. "Fast and wild: Bootstrap inference in Stata using boottest," Stata Journal, StataCorp LP, vol. 19(1), pages 4-60, March.
    10. Elise Gould, 2004. "Decomposing the effects of children's health on mother's labor supply: is it time or money?," Health Economics, John Wiley & Sons, Ltd., vol. 13(6), pages 525-541, June.
    11. Morefield, Brant, 2010. "Parental Health Events and Children’s Skill Development," UNCG Economics Working Papers 10-11, University of North Carolina at Greensboro, Department of Economics.
    12. Kevin Milligan & Mark Stabile, 2011. "Do Child Tax Benefits Affect the Well-Being of Children? Evidence from Canadian Child Benefit Expansions," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 175-205, August.
    13. James G. MacKinnon & Matthew D. Webb, 2017. "Wild Bootstrap Inference for Wildly Different Cluster Sizes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(2), pages 233-254, March.
    14. Kelly Chen & Nicole Fortin & Shelley Phipps, 2015. "Young in class: Implications for inattentive/hyperactive behaviour of Canadian boys and girls," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(5), pages 1601-1634, December.
    15. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
    16. Gennetian, Lisa A. & Morris, Pamela A, 2003. "The Effects of Time Limits and Make-Work-Pay Strategies on the Well-Being of Children: Experimental Evidence from Two Welfare Reform Programs," Children and Youth Services Review, Elsevier, vol. 25(1-2), pages 17-54.
    17. Mari Rege & Kjetil Telle & Mark Votruba, 2011. "Parental Job Loss and Children's School Performance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(4), pages 1462-1489.
    18. Kevin Milligan, 2005. "Subsidizing the Stork: New Evidence on Tax Incentives and Fertility," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 539-555, August.
    19. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
    20. Moffitt, Robert, 1990. "The effect of the U.S. welfare system on marital status," Journal of Public Economics, Elsevier, vol. 41(1), pages 101-124, February.
    21. Burton, Peter & Lethbridge, Lynn & Phipps, Shelley, 2008. "Children with disabilities and chronic conditions and longer-term parental health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(3), pages 1168-1186, June.
    22. Kelly Chen & Lars Osberg & Shelley Phipps, 2015. "Inter-generational effects of disability benefits: evidence from Canadian social assistance programs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 873-910, October.
    23. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    24. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
    25. Elizabeth Clark-Kauffman & Greg J. Duncan & Pamela Morris, 2003. "How Welfare Policies Affect Child and Adolescent Achievement," American Economic Review, American Economic Association, vol. 93(2), pages 299-303, May.
    26. Andrea M. Mühlenweg & Franz G. Westermaier & Brant Morefield, 2016. "Parental health and child behavior: evidence from parental health shocks," Review of Economics of the Household, Springer, vol. 14(3), pages 577-598, September.
    27. Frenette, Marc, 2007. "Why Are Youth from Lower-income Families Less Likely to Attend University? Evidence from Academic Abilities, Parental Influences, and Financial Constraints," Analytical Studies Branch Research Paper Series 2007295e, Statistics Canada, Analytical Studies Branch.
    28. Robert Haveman & Barbara Wolfe & James Spaulding, 1991. "Childhood events and circumstances influencing high school completion," Demography, Springer;Population Association of America (PAA), vol. 28(1), pages 133-157, February.
    29. Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
    30. Michele Campolieti, 2004. "Disability Insurance Benefits and Labor Supply: Some Additional Evidence," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 863-890, October.
    31. Haveman, Robert & Wolfe, Barbara, 2000. "The economics of disability and disability policy," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 18, pages 995-1051, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katie Jajtner & Matt Messel & Jason Fletcher, 2023. "Social Security Disability Insurance and intergenerational economic mobility," Contemporary Economic Policy, Western Economic Association International, vol. 41(4), pages 575-593, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kelly Chen & Lars Osberg & Shelley Phipps, 2015. "Inter-generational effects of disability benefits: evidence from Canadian social assistance programs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 873-910, October.
    2. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    3. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2021. "Parental Resources and College Attendance: Evidence from Lottery Wins," American Economic Review, American Economic Association, vol. 111(4), pages 1201-1240, April.
    4. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    5. Lance Lochner & Alexander Monge-Naranjo, 2012. "Credit Constraints in Education," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 225-256, July.
    6. Pierre Lefebvre & Philip Merrigan, 2008. "Family Background, Family Income, Cognitive Tests Scores, Behavioural Scales and their Relationship with Post-secondary Education Participation: Evidence from the NLSCY," Cahiers de recherche 0830, CIRPEE.
    7. Daniel Gladwell & Gurleen Popli & Aki Tsuchiya, 2022. "Predictors of becoming not in education, employment or training: A dynamic comparison of the direct and indirect determinants," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 485-514, December.
    8. Fiorini, M., 2010. "The effect of home computer use on children's cognitive and non-cognitive skills," Economics of Education Review, Elsevier, vol. 29(1), pages 55-72, February.
    9. Sánchez, Alan & Singh, Abhijeet, 2018. "Accessing higher education in developing countries: Panel data analysis from India, Peru, and Vietnam," World Development, Elsevier, vol. 109(C), pages 261-278.
    10. Heckman, James J. & Raut, Lakshmi K., 2016. "Intergenerational long-term effects of preschool-structural estimates from a discrete dynamic programming model," Journal of Econometrics, Elsevier, vol. 191(1), pages 164-175.
    11. Philippe Belley & Marc Frenette & Lance Lochner, 2014. "Post-secondary attendance by parental income in the U.S. and Canada: Do financial aid policies explain the differences?," Canadian Journal of Economics, Canadian Economics Association, vol. 47(2), pages 664-696, May.
    12. Philippe Belley & Marc Frenette & Lance Lochner, 2011. "Post-Secondary Attendance by Parental Income in the U.S. and Canada: What Role for Financial Aid Policy?," NBER Working Papers 17218, National Bureau of Economic Research, Inc.
    13. Bratti, Massimiliano & Mendola, Mariapia, 2014. "Parental health and child schooling," Journal of Health Economics, Elsevier, vol. 35(C), pages 94-108.
    14. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 37-89.
    15. Ralph Stinebrickner & Todd Stinebrickner, 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study," American Economic Review, American Economic Association, vol. 98(5), pages 2163-2184, December.
    16. Lance J. Lochner & Alexander Monge-Naranjo, 2011. "The Nature of Credit Constraints and Human Capital," American Economic Review, American Economic Association, vol. 101(6), pages 2487-2529, October.
    17. Brant Abbott & Giovanni Gallipoli & Costas Meghir & Giovanni L. Violante, 2019. "Education Policy and Intergenerational Transfers in Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2569-2624.
    18. Pedro Carneiro & James J. Heckman, 2002. "The Evidence on Credit Constraints in Post--secondary Schooling," Economic Journal, Royal Economic Society, vol. 112(482), pages 705-734, October.
    19. Melanie Guldi & Amelia Hawkins & Jeffrey Hemmeter & Lucie Schmidt, 2018. "Supplemental Security Income and Child Outcomes: Evidence from Birth Weight Eligibility Cutoffs," NBER Working Papers 24913, National Bureau of Economic Research, Inc.
    20. Behrman, J. & Parker, S. & Todd, P. & Zhang, W., 2021. "Prospering through Prospera: CCT Impacts on Educational Attainment and Achievement in Mexico," Cambridge Working Papers in Economics 2178, Faculty of Economics, University of Cambridge.

    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:canjec:v:52:y:2019:i:4:p:1401-1432. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1540-5982 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.