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Abstract for:

Does money affect children's outcomes?

Kerris Cooper,  Kitty Stewart,  October 2013
Paper No' CASEreport 80: Full paper (pdf)

Summary:
This report examines whether money has a causal impact on children’s outcomes. There is abundant evidence that children growing up in lower income households do less well than their peers on a range of wider outcomes, including measures of health and education. But is money important in itself, or do these associations simply reflect other differences between richer and poorer households, such as levels of parental education or attitudes towards parenting?


Tags: children; money; education

Abstract:

Children in low-income households do less well than their better-off peers on many outcomes in life, such as education or health, simply because they are poorer. While a parent's level of education, attitude towards bringing up children and other parental factors also have a bearing, research shows that having more money directly improves the development and level of achievement of children. Increases in family income substantially reduce differences in schooling outcomes and improve wider aspects of a child’s well-being. Cognitive development and school achievement were most improved by having more money. Conversely, reductions in family income, including benefit cuts, are likely to have wide-ranging negative effects. Money seems to have more of an effect among low-income families.

This paper has been published as:
This paper is published as a Joseph Rowntree Report.