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The effects of family instability on children's outcomes

Author

Listed:
  • Rebecca Lessem

    (Carnegie Mellon University)

  • Carl Sanders

    (Washington University in St. Louis)

Abstract

We study how family instability causally affects child outcomes, focusing on cognitive, physical, and emotional development. To do this, we develop and estimate a dynamic model of marriage and child development. The mother chooses both marital status (choosing between married, cohabiting, and single) and how much to invest in the child each period, and the child's outcomes evolve as a function of these decisions. One key component of the model is that marriage may create a more binding commitment to stay together, since both the monetary and psychological costs of divorce are likely higher than breakups of non-married couples. We estimate the model using data from Fragile families, a survey that starts with a sample of mothers and children, and follows them up to age 15. After estimating the model, we can use our results to quantify how much their outcomes would improve if there were policies put in place to encourage parents to stay together; for example, transfers that were tied to the couple remaining as joint parents, or changes to the legal treatment of cohabiting couples making it more costly to separate. These types of policies have a direct effect on the child if marital stability affects outcomes, and also potentially an indirect effect if the probability of divorce affects the mother's incentive to invest in the child.

Suggested Citation

  • Rebecca Lessem & Carl Sanders, 2019. "The effects of family instability on children's outcomes," 2019 Meeting Papers 1192, Society for Economic Dynamics.
    • Handle: RePEc:red:sed019:1192
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    References listed on IDEAS

    as
    1. Michael J. Brien & Lee A. Lillard & Steven Stern, 2006. "Cohabitation, Marriage, And Divorce In A Model Of Match Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 451-494, May.
    2. Mark Hayward & Bridget Gorman, 2004. "The long arm of childhood: The influence of early-life social conditions on men’s mortality," Demography, Springer;Population Association of America (PAA), vol. 41(1), pages 87-107, February.
    3. Melissa Tartari, 2015. "Divorce And The Cognitive Achievement Of Children," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 597-645, May.
    4. Kevin Lang & Jay L. Zagorsky, 2001. "Does Growing up with a Parent Absent Really Hurt?," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 253-273.
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