The impact of household income on cognitive and behavioural development of a child
London School of Economics LSE Summary: There is a strong direct link between household income and children's outcomes, a new review of 61 studies shows. We included a third-degree polynomial of household pretax income i.
Effects of poverty on development
The evidence on cognitive development and school achievement was the clearest and most common, followed by that on social and behavioural development. The average age among children was 6. The use of EITC as an instrument for income has been implemented in prior studies 12 , 17 , 22 , 23 , 33 , The second outcome was the Home Observation Measurement of the Environment HOME inventory, which measures the quality of cognitive stimulation and environmental support in the home for children aged 0—14 years. In each set of models, we included an interaction term between payment size and marital status to capture potential heterogeneous effects between these groups. The results of analyses using unimputed data were similar to these main results Supplementary Data , although there was also a statistically significant beneficial impact of EITC amount on 4-year difference in the HOME score. In our alternative specification in which we modelled the predictor as the difference between the current year's EITC and the EITC payment size from 2 years prior, coefficients were in a similar direction and similar in magnitude for the BPI score but were no longer statistically significant Supplementary Data. Cite This Page:.
Details have been published previously This is likely to be because of measurement error in household survey data on income, which is difficult to capture accurately at any given point because of its volatility and complexity. All thirteen of the 34 studies which asked this question reached the same conclusion.
Conversely, reductions in family income, including benefit cuts, are likely to have wide-ranging negative effects. Studies were only included if they used randomised controlled trials, natural experiments, instrumental variable techniques or fixed-effect approaches on longitudinal data.
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It involves objective items scored by the interviewer e. They mostly focused on cognitive outcomes, and most indicated that financial resources in early childhood matter most.
Nonetheless, some evidence suggests that at least part of this association is causal.
based on 108 review