Family income and child cognitive and noncognitive development in Australia: Does money matter?

Khanam, Rasheda & Nghiem, Son (2016) Family income and child cognitive and noncognitive development in Australia: Does money matter? Demography, 53(3), pp. 597-621.

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This article investigates whether family income affects children’s cognitive and noncognitive development by exploiting comprehensive information from the Longitudinal Study of Australian Children. We include variables that represent parental investment, parental stress, and neighborhood characteristics to examine if these factors mediate the effects of income. Using dynamic panel data, we find that family income is significantly associated with children’s cognitive skills but not with noncognitive skills. Mother’s education, parent’s physical and mental health, parenting styles, child’s own health, and presence of both biological parents are the most important factors for children’s noncognitive development. For cognitive development, income as well as parents’ education, child’s birth weight, and number of books that children have at home are highly significant factors. We also find strong evidence to support the skill formation theory that children’s previous cognitive and noncognitive outcomes are significantly related to their current outcomes.

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ID Code: 96220
Item Type: Journal Article
Refereed: Yes
DOI: 10.1007/s13524-016-0466-x
ISSN: 1533-7790
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Health Economics (140208)
Divisions: Current > QUT Faculties and Divisions > Faculty of Health
Current > Institutes > Institute of Health and Biomedical Innovation
Current > Schools > School of Public Health & Social Work
Copyright Owner: Copyright 2016 Springer
Deposited On: 16 Jun 2016 23:08
Last Modified: 23 Jun 2016 06:13

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