Open adoption, human capital formation, and uncertainty

Abstract

A model of child human capital formation is outlined, which is used to assess the consequences of uncertainty experienced by adoptive parents related to practices of openness in adoption. The model predicts that uncertainty in the adoption environment may lead to lower levels of human capital investments in adopted children. Empirical evidence indicates that uncertainty represented by fear of not bonding with the adopted child is the most important predictor of resistance to open adoption.

Using Subsidies to Promote the Adoption of Children from Foster Care

“…Medoff (1993) and Gennetian (1999) explore the determinants of relinquishment and determinants of abortion, while Waddoups (1994) considers issues in open adoption. Landes and Posner (1978); Posner (1992); and Blackstone, Buck, and Hakim (2004) conclude that the birth parents, the adoptive parents, and the children would be better off if the price mechanism were allowed to function more freely in the market for adoption.…”

Female Labor Supply: Adoption and the Labor Force Participation Decision

“…Taking a different approach, Waddoups (1994) analyzes parental decisions to acquire children through adoption. In this model, adoption and subsequent household resource allocation decisions are treated as human capital investments under uncertainty.…”