American Economic Journal

Unintended Consequences of Welfare Cuts on Children and Adolescents

scientific article

13. May 2024

This paper studies the effects of a large welfare benefit reduction on the children in the affected families. The welfare cut targeted adult refugees who received residency in Denmark, and it reduced their disposable income by 30 percent on average over the first five years. We show that children exposed to the welfare cut during preschool and school-age obtained lower GPAs, experienced reduced wellbeing and overall education levels, and suffered lower employment and earnings as adults. Children in their teens at exposure faced large increases in conviction probabilities for violent and property crimes.

Related publications

Forskningsrapport

Research report

Unintended Consequences of Welfare Cuts on Children and Adolescents

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Vidensoverblik

Knowledge overview

Transfer reductions to refugees yield substantial negative returns

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Articles in scientific journals

Demography

Two Decades of Child Welfare System Contact in the Global North: A Research Note on Trends in 44 Countries

Abstract Child maltreatment and child welfare system contact are both associated with an elevated risk of adverse outcomes in childhood, adolescence, and adulthood. Yet, data on variation in system contact are available for only a handful of countries, limiting knowledge about the societal correlates of system contact. As reported in this research note, we identified, collected, and harmonized administrative data on child welfare agency investigations, confirmed maltreatment, and placements into out-of-home care for 44 countries in the Global North. We analyzed 15 sociodemographic factors commonly associated with child maltreatment and child welfare system contact. Results support three core conclusions. First, data are much more available on late-stage system contact (e.g., foster care caseloads) than for early-stage system contact (e.g., investigations). Second, whereas early-stage contact tended to be on the rise in most countries, late-stage contact was stable or declining. Cross-national variation in these trends was generally less substantial than cross-national variation in levels of child welfare system contact, indicating relatively stable cross-national differences. Third, cross-national variation in out-of-home care largely reflected, but was not reducible to, regional and sociocultural variation: we find little evidence for universal drivers of foster care caseloads across the Global North.

1 February 2025

Social Forces

Parental Union Dissolution and Children’s Emotional and Behavioral Problems: Addressing Selection and Considering the Role of Post-Dissolution Living Arrangements

Abstract Increasingly children whose parents no longer live together are living in two households, alternating between family contexts. A growing literature documents strong, descriptive heterogeneities in children’s wellbeing across living arrangements. We combine longitudinal survey and administrative population data on 6000 Danish children born in 1995 to study how children’s emotional and behavioral problems change following parental union dissolution. Extending the existing, predominantly descriptive literature, we use several panel regression strategies that aim to control for unobservable confounding together with repeated measurement of the Strength and Difficulties Questionnaire to study children’s problems increase after parental union dissolution and examine heterogeneity across post-dissolution living arrangements. We find a substantial increase in emotional and behavioral problems following union dissolution, but only little evidence for substantial heterogeneity existing across post-dissolution family constellations and living arrangements. Our findings indicate that not only there is casual effect of parental union dissolution on children’s long-term wellbeing, but also that existing descriptive findings on differences across living arrangements likely are due to selection.

25 January 2025