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  • Family Income and Child Cognitive and Non-Cognitive Development in Australia: Does Money Matter?

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    KhanamPUB4905.pdf (350.2Kb)
    Author(s)
    Khanam, Rasheda
    Nghiem, Son
    Griffith University Author(s)
    Nghiem, Son H.
    Year published
    2016
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    Abstract
    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 ...
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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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    Journal Title
    Demography
    Volume
    53
    Issue
    3
    DOI
    https://doi.org/10.1007/s13524-016-0466-x
    Copyright Statement
    © 2016 Population Association of America. This is an electronic version of an article published in Demography, Volume 53, Issue 3, pp 597–621, 2016. Demography is available online at: http://link.springer.com/ with the open URL of your article.
    Subject
    Health Economics
    Demography
    Publication URI
    http://hdl.handle.net/10072/373319
    Collection
    • Journal articles

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