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Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children

Author

Listed:
  • Simon, David

    (University of Connecticut)

  • Sojourner, Aaron

    (Upjohn Institute for Employment Research)

  • Pedersen, Jon

    (Minnesota Department of Human Services)

  • Ombisa Skallet, Heidi

    (Minnesota Department of Human Services)

Abstract

Difference-in-differences analysis of linked administrative data estimates effects of a Minnesota policy change that increased the payments to adoptive parents and kin guardians for children ages 6 and older, making them equal to what foster care payments were, but didn't for younger children. Equalizing payments raised average academic achievement by 31 percent of a standard deviation three years after foster children's cases started, raised the value of payments by about $2,000 per child during this period, raised the monthly chance of moving from foster care to adoption or kin guardianship by 29 percent, improved school stability, and reduced school suspensions.

Suggested Citation

  • Simon, David & Sojourner, Aaron & Pedersen, Jon & Ombisa Skallet, Heidi, 2024. "Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children," IZA Discussion Papers 17057, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17057
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    More about this item

    Keywords

    child welfare; education; human capital;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D19 - Microeconomics - - Household Behavior - - - Other

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