The impact of family economic status and parental commitment on children: An economic approach to children's outcomes

Soo Yeon Kim, Purdue University

Abstract

The major objective of this study is to examine the factors affecting children's behavioral problems, self-esteem, mastery, academic performance, and educational aspirations using data from the National Survey of Families and Households (NSFH), waves one and two. The conceptual frameworks of this research are based on household production, human capital, role model or socialization, and culture of poverty theories. The sample consists of families with focal children ages 10 to 17 (N = 927). This study also highlights children in low income families (N = 311) to be able to predict the possible impact of recent major policy changes on needy children. For econometric analyses, probit and OLS models are employed to identify factors associated with behavior problems, self-esteem, mastery, academic performance, and educational aspiration. The main findings of this study can be summarized as follows: (1) Family economic status and parental time commitment have weak effects on children's behavior problems, holding other factors constant. They are, however, found to exert significant influences on self-esteem, mastery, and educational aspiration. (2) Family economic status and parental time use do not have significant effects on children from economically constrained families, when other explanatory variables are held constant. Thus, household production and human capital theories may not explain children's behavior problems and low income children's psychological and academic outcomes. (3) Environmental variables such as family structure, parenting behavior, race, or school experience play a significant role in forming and developing children's various outcomes. (4) In contrast to previous studies and popular stereotype, black children are less likely to have behavior problems and have higher self-esteem than their white counterparts. (5) An increase of welfare income relative to total family income is found to enhance children's self-esteem and mastery, which suggests that the intended positive effect of welfare program on needy children exists. (6) The longer families are on welfare, the more likely their children are to repeat a grade, and the lower their educational aspirations. These results support the underlying assumptions of the recent welfare reform in instituting a time-limit on assistance.

Degree

Ph.D.

Advisors

Rowe, Purdue University.

Subject Area

Economics|Families & family life|Personal relationships|Sociology|Developmental psychology|Social psychology|Welfare

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