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Does Money Affect Children’s Outcomes? An update

Cooper, Kerris and Stewart, Kitty ORCID: 0000-0001-7744-8741 (2017) Does Money Affect Children’s Outcomes? An update. CASEpapers (203). Centre for Analysis of Social Exclusion, London, UK.

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This report provides an update to Does Money Affect Children’s Outcomes?: A Systematic Review, published in October 2013. Using systematic search approaches, we review the literature examining the relationship between household financial resources and children’s outcomes, focusing on OECD countries and on the last fifty years. We include studies looking at children’s health, cognitive development and social, emotional and behavioural development, as well as studies on relevant intermediate outcomes, including the home environment and maternal mental health and health behaviours. Studies are only included if they use methods that allow us to reach conclusions about causal relationships: this includes randomised controlled experiments, quasi-experimental situations, and longitudinal studies tracking both financial resources and outcomes over time. The update adds 27 new studies to the 34 in the original review, and slightly expands the country coverage, although the evidence base remains heavily US-focused. The studies provide strong evidence that income has causal effects on a wide range of children’s outcomes, especially in households on low incomes to begin with. We conclude that reducing income poverty can be expected to have a significant impact on children’s environment and on their development.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2017 The Authors
Divisions: Centre for Analysis of Social Exclusion
Social Policy
Subjects: H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HC Economic History and Conditions
B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I31 - General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I32 - Measurement and Analysis of Poverty
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs
Date Deposited: 19 Feb 2020 13:09
Last Modified: 15 Sep 2023 23:49

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