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Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits

Randall Akee (), William E. Copeland, Gordon Keeler, Adrian Angold and E. Jane Costello

American Economic Journal: Applied Economics, 2010, vol. 2, issue 1, 86-115

Abstract: We examine the role an exogenous increase in household income, due to a government transfer unrelated to household characteristics, plays in children's long-run outcomes. Children in affected households have higher levels of education in their young adulthood and a lower incidence of criminality for minor offenses. Effects differ by initial household poverty status. An additional $4,000 per year for the poorest households increases educational attainment by one year at age 21, and reduces the chances of committing a minor crime by 22 percent for 16 and 17 year olds. Our evidence suggests improved parental quality is a likely mechanism for the change. (JEL D14, H23, I32, I38, J13)

JEL-codes: D14 H23 I32 I38 J13 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/app.2.1.86
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American Economic Journal: Applied Economics is currently edited by Alexandre Mas

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