Early childhood trauma increases the risk of academic difficulties. The purpose of this study was to investigate the prevalence of early contact with child protection services (CPS) and to determine whether early exposure to maltreatment investigations was associated with important academic outcomes. The authors focused specifically on standardized test scores (math and reading), grade retention, and special education status in third grade. The sample was diverse and included all children born between 2000 and 2006 and enrolled in Michigan's public schools ( N = 732,838). By the time these students reached third grade, approximately 18% were associated with a formal CPS investigation. In some school districts, more than 50% of third graders were associated with an investigation. African American and poor students were more likely to be investigated for maltreatment. Children associated with maltreatment investigations scored significantly lower on standardized math and reading tests, were more likely to be identified as needing special education, and were more likely to be held back at least one grade. These findings indicate that involvement with CPS is not an infrequent event in the lives of young children and that within some school districts, maltreatment investigations are the norm. Child welfare and educational systems must collaborate so that the early academic struggles experienced by victims of maltreatment do not mature into more complicated difficulties later in life.
Six percent of children in the United States enter foster care by age 18. We estimate the effects of foster care on children's outcomes by exploiting the quasi-random assignment of child welfare investigators in Michigan. We find that foster care improved children's safety and educational outcomes. Gains emerged after children exited the foster system when most were reunified with their birth parents, suggesting that improvements made by their parents were an important mechanism. These results indicate that safely reducing the use of foster care, a goal of recent federal legislation, requires more effective in-home, prevention-focused efforts. (JEL H75, I21, J13, K42)
Foster care provides substitute living arrangements to protect maltreated children. The practice is remarkably common: it is estimated that 5 percent of children in the United States are placed in foster care at some point during childhood. This paper describes the main tradeoffs in child welfare policy and provides background on policy and practice most in need of rigorous evidence. Trends include efforts to prevent foster care on the demand side and to improve foster home recruitment on the supply side. With increasing data availability and a growing interest in evidence-based practices, there are opportunities for economic research to inform policies that protect vulnerable children.
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