EconPapers    
Economics at your fingertips  
 

Understanding the Mechanisms through Which Adverse Childhood Experiences Affect Lifetime Economic Outcomes

Stefanie Schurer () and Kristian Trajkovski ()
Additional contact information
Stefanie Schurer: University of Sydney
Kristian Trajkovski: University of Sydney

No 11450, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: Over the past two decades, researchers have shown a growing interest in the role of adverse childhood experiences (ACEs) – children's confrontation with maltreatment and household dysfunction – in shaping lifetime opportunities. However, this is the first study to quantify the economic penalties of ACEs and identify the mechanisms which produce the relationship. We source data from the National Child Development Study to construct an ACE index based on prospective childhood information and estimate an earnings penalty of 7.3 percent for each additional ACE, a 53.1 percent higher probability of being welfare dependent, and a 34 percent higher probability of poverty at age 55, controlling for important background factors measured in childhood. The results are driven by parental neglect, a component of the ACE index based on teacher assessments. Observed differences in later-life earnings between children with and without neglect exposure can be fully explained by observable differences in human capital accumulated by age 33. The productivity loss in an economy due to parental failures to nurture and protect their children is likely to be high. Our findings contribute to a wider discussion on the multidimensionality and expanding definitions of childhood poverty.

Keywords: childhood poverty; adverse childhood experiences; economic outcomes; welfare dependence; human capital (search for similar items in EconPapers)
JEL-codes: I32 J12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2018-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp11450.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11450

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().

 
Page updated 2019-04-14
Handle: RePEc:iza:izadps:dp11450