Income directly affects children’s outcomes

Poorer children have worse cognitive, social-behavioural and health outcomes because they are poor, and not just because poverty is correlated with other household and parental characteristics, according to a new report from the London School of Economics and Political Science (LSE).

Looking to explain why income matters, they found evidence in support of two central theories, one relating to parents’ ability to invest in goods and services that further child development, and the other relating to the stress and anxiety parents suffer caused by low income. There is particularly strong evidence that increasing income is likely to reduce maternal depression, which is known to be important for children’s outcomes.

— source lse.ac.uk

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