Arbeitspapier
Understanding the Mechanisms through Which Adverse Childhood Experiences Affect Lifetime Economic Outcomes
Over the past two decades, researchers have shown a growing interest in the role of adverse childhood experiences (ACEs) – children's confrontation with maltreatment and household dysfunction – in shaping lifetime opportunities. However, this is the first study to quantify the economic penalties of ACEs and identify the mechanisms which produce the relationship. We source data from the National Child Development Study to construct an ACE index based on prospective childhood information and estimate an earnings penalty of 7.3 percent for each additional ACE, a 53.1 percent higher probability of being welfare dependent, and a 34 percent higher probability of poverty at age 55, controlling for important background factors measured in childhood. The results are driven by parental neglect, a component of the ACE index based on teacher assessments. Observed differences in later-life earnings between children with and without neglect exposure can be fully explained by observable differences in human capital accumulated by age 33. The productivity loss in an economy due to parental failures to nurture and protect their children is likely to be high. Our findings contribute to a wider discussion on the multidimensionality and expanding definitions of childhood poverty.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 11450
- Classification
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Wirtschaft
Measurement and Analysis of Poverty
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
- Subject
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childhood poverty
adverse childhood experiences
economic outcomes
welfare dependence
human capital
- Event
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Geistige Schöpfung
- (who)
-
Schurer, Stefanie
Trajkovski, Kristian
- Event
-
Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
-
Bonn
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schurer, Stefanie
- Trajkovski, Kristian
- Institute of Labor Economics (IZA)
Time of origin
- 2018
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