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Mediators of Income Effects on Young Children's Development

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  • W. Jean Yeung
  • Miriam R. Linver

Abstract

This paper uses data from the Panel Study of Income Dynamics and its 1997 Child Development Supplement to examine the mediating pathways of family income on children's well-being. Two sets of mediating factors are examined in line with two dominating perspectives in the literature: (1) human capital/financial resources model, and (2) psychological/family stressmodel. We examined how income affects preschool children's developmental outcomes through different pathways. Results support our hypothesis that different mediating mechanisms operate on the association between income and children's cognitive ability and behavior problems. We found much of the relation of income and children's cognitive ability was mediated by a family's ability to finance an environment that is conducive to children's learning. In contrast, family income was related to children's behavior problems primarily through maternal depressive affect. Although the financial resources and home environment were not directly associated with children's behavior problems, these factors were indirectly related to children's behavior through their association with lower maternal depressive affect.

Suggested Citation

  • W. Jean Yeung & Miriam R. Linver, 2000. "Mediators of Income Effects on Young Children's Development," JCPR Working Papers 176, Northwestern University/University of Chicago Joint Center for Poverty Research.
    • Handle: RePEc:wop:jopovw:176
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    1. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    2. Dan Maurice Levy & Greg Duncan, 2000. "Using Sibling Samples to Assess the Effect of Childhood Family Income on Completed Schooling," JCPR Working Papers 168, Northwestern University/University of Chicago Joint Center for Poverty Research.
    3. 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.
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    1. Brady-Smith, Christy & Brooks-Gunn, Jeanne & Waldfogel, Jane & Fauth, Rebecca, 2001. "Work or welfare? Assessing the impacts of recent employment and policy changes on very young children," Evaluation and Program Planning, Elsevier, vol. 24(4), pages 409-425, November.

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