Financial Incentives for Adoption and Kin Guardianship Improve Achievement for Foster Children

Authors

David Simon, University of Connecticut and National Bureau of Economic ResearchFollow
Aaron Sojourner, W.E. Upjohn Institute for Employment Research and IZAFollow
Jon Pedersen, Minnesota Department of Human ServicesFollow
Heidi Ombisa Skallet, Minnesota Department of Human ServicesFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0001-6839-2512

Series

Upjohn Institute working paper ; 24-401

DOI

10.17848/wp24-401

Issue Date

June 2024

Abstract

Difference-in-differences analysis of linked administrative data estimates effects of a Minnesota policy change that increased the payments to adoptive parents and kin guardians for children ages 6 and older, making them equal to what foster care payments were, but didn’t for younger children. Equalizing payments raised average academic achievement by 31 percent of a standard deviation three years after foster children’s cases started, raised the value of payments by about $2,000 per child during this period, raised the monthly chance of moving from foster care to adoption or kin guardianship by 29 percent, improved school stability, and reduced school suspensions.

Sponsorship

University of Connecticut Health Economics and Policy Education Lab and Casey Family Programs

Subject Areas

EDUCATION; Early childhood; Preschool and early education