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The effects of economic instability on children's educational outcomes

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  • Elliott, William

Abstract

Welfare Based on Assets, a Way to Smooth Out Economic Instability and Develop Children's Human Capital is a four-part series of papers that focuses on the relationship between economic instability (i.e., income shocks, asset shocks, home loss, and asset poverty) and children's human capital development. Collectively, these reports build on the compelling observation that the pattern low-income families walk into is a present time oriented or consumption based pattern of behavior; in contrast, the pattern higher income families walk into is future oriented or asset based. In the third paper we find in most cases income shocks and asset shocks do not appear to be harmful to children's educational outcomes. However, children living in liquid and net worth asset poor families have lower academic achievement scores, high school graduation rates, college enrollment rates, and college graduation rates than children living in families that are asset sufficient. Overall, findings can be interpreted as suggesting that a bifurcated welfare system, with income-based programs for poor families and asset-based programs for higher income families, may provide higher income families with an educational advantage over low-income families and might ultimately help exacerbate educational inequalities in America.

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  • Elliott, William, 2013. "The effects of economic instability on children's educational outcomes," Children and Youth Services Review, Elsevier, vol. 35(3), pages 461-471.
    • Handle: RePEc:eee:cysrev:v:35:y:2013:i:3:p:461-471
    DOI: 10.1016/j.childyouth.2012.12.017
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    References listed on IDEAS

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    Cited by:

    1. Elliott, William & Rauscher, Emily & Nam, Ilsung, 2018. "Unequal returns: Intragenerational asset accumulation differs by net worth in early adulthood," Children and Youth Services Review, Elsevier, vol. 85(C), pages 253-263.
    2. Elliott, William, 2013. "Small-dollar children's savings accounts and children's college outcomes," Children and Youth Services Review, Elsevier, vol. 35(3), pages 572-585.
    3. Anne Blumenthal & David W. Rothwell, 2018. "The Measurement and Description of Child Income and Asset Poverty in Canada," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(6), pages 1907-1933, December.
    4. John J. McCreary & Julianne M. Edwards & Gregory J. Marchant, 2015. "Inequality, SES, economic indicators, and student achievement," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 9(1), pages 58-65, June.
    5. Lewis, Melinda & Cramer, Reid & Elliott, William & Sprague, Aleta, 2014. "Policies to promote economic stability, asset building, and child development," Children and Youth Services Review, Elsevier, vol. 36(C), pages 15-21.

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