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A decomposition analysis of the relationship between parental income and multiple child outcomes

Author

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  • Elizabeth Washbrook
  • Paul Gregg
  • Carol Propper
Abstract
This paper explores the relationship between family income and six child developmental outcomes in mid-childhood. The outcomes span development in cognitive, emotional, behaviour and health domains. We examine the income gradients in a consistent manner that allows comparison across outcomes and decompose the income gradients into two overlapping sets of pathways. The first operates through observed parental behaviours and their inputs into children that are associated with income. The second captures the influence of other observed family characteristics, such as low parental education, that tend to co-occur with low income. There is also a residual portion of the income gradient that is not associated with observed inputs or measures of parental background and human capital. We find that the extent of the income gradient differs across outcomes. The strongest gradients are associated with cognitive outcomes, the weakest with health outcomes. Some inputs account for part of the explained income gradient across all six child outcomes but it is more common for specific inputs to be strongly associated with a limited number of outcomes. This variation in the role of inputs suggests that the underlying mediators of the social gradients in different domains of child development are not the same.

Suggested Citation

  • Elizabeth Washbrook & Paul Gregg & Carol Propper, 2013. "A decomposition analysis of the relationship between parental income and multiple child outcomes," The Centre for Market and Public Organisation 13/313, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:13/313
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    2. Jemimah Ride, 2019. "Is socioeconomic inequality in postnatal depression an early-life root of disadvantage for children?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1013-1027, September.
    3. Marta E Barazzetta & Andrew E. Clark & Conchita D’ambrosio, 2017. "Childhood Circumstances and Young Adulthood Outcomes: The Effects of Mothers' Financial Problems," Working Papers halshs-01622334, HAL.
    4. Mari, Gabriele, 2024. "Pandemic Income Support Programs and Adolescent Mental Health in the UK, Ireland and Australia," SocArXiv pzr4k, Center for Open Science.
    5. Kerris Cooper & Kitty Stewart, 2021. "Does Household Income Affect children’s Outcomes? A Systematic Review of the Evidence," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(3), pages 981-1005, June.
    6. Clark, Andrew E. & D’Ambrosio, Conchita & Barrazzetta, Marta, 2019. "Childhood circumstances and young adult outcomes: the role of mothers' financial problems," LSE Research Online Documents on Economics 102630, London School of Economics and Political Science, LSE Library.
    7. Gwyther Rees, 2018. "The Association of Childhood Factors with Children’s Subjective Well-Being and Emotional and Behavioural Difficulties at 11 years old," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(4), pages 1107-1129, August.
    8. Mari, Gabriele & Keizer, Renske, 2020. "Families of Austerity: Welfare Cuts and Family Stress in Britain," SocArXiv vdej8, Center for Open Science.
    9. Bruce Bradbury & Jane Waldfogel & Elizabeth Washbrook, 2019. "Income-Related Gaps in Early Child Cognitive Development: Why Are They Larger in the United States Than in the United Kingdom, Australia, and Canada?," Demography, Springer;Population Association of America (PAA), vol. 56(1), pages 367-390, February.
    10. Stefani Milovanska-Farrington, 2022. "The effect of child benefits on financial difficulties and spending habits: evidence from Poland’s Family 500 + program," International Economics and Economic Policy, Springer, vol. 19(4), pages 719-739, October.
    11. Cooper, Kerris & Stewart, Kitty, 2020. "Does household income affect children’s outcomes? A systematic review of the evidence," LSE Research Online Documents on Economics 107029, London School of Economics and Political Science, LSE Library.
    12. Mari, Gabriele & Keizer, Renske, 2020. "Parental job loss and early child development in the Great Recession," SocArXiv 2596e, Center for Open Science.
    13. Rasheda Khanam & Son Nghiem, 2016. "Family Income and Child Cognitive and Noncognitive Development in Australia: Does Money Matter?," Demography, Springer;Population Association of America (PAA), vol. 53(3), pages 597-621, June.

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