Parents' incomes and children's outcomes: A quasi-experiment using transfer payments from casino profits

Journal Article

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.

Full Text

Duke Authors

Cited Authors

  • Akee, RKQ; Copeland, WE; Keeler, G; Angold, A; Costello, EJ

Published Date

  • 2010

Published In

Volume / Issue

  • 2 / 1

Start / End Page

  • 86 - 115

International Standard Serial Number (ISSN)

  • 1945-7782

Digital Object Identifier (DOI)

  • 10.1257/app.2.1.86