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Mediators of Income Effects on Young Children's Development

W. Jean Yeung and Miriam R. Linver

JCPR Working Papers from Northwestern University/University of Chicago Joint Center for Poverty Research

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.

Date: 2000-05-31
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Persistent link: https://EconPapers.repec.org/RePEc:wop:jopovw:176

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