Saturday, November 8, 2014
San Juan (Convention Center)
*Names in bold indicate Presenter
Existing research has investigated the effect of early childhood educational interventions on child outcomes. These studies have examined how changes in educational environment affect mental health and personality traits. In contrast, we examine the effect of a change in unearned household income on child mental health and personality traits. Our results indicate that there are large beneficial effects of changes in unearned income on child mental health and personality traits. We also examine potential channels to explain the change in child mental health and personality traits. Parenting and relationships with appear to be an important mechanism. Parents appear to compensate most for children who are from the lowest absolute levels of initial personality traits and mental health levels. Finally, using non-treated survey respondents we show the long-run effect of age 16 levels of personality traits and mental health on age 25 levels of income, educational attainment and employment.