“…The literature is much less clear in distinguishing the effect of income by source or in distinguishing pure income effects from substitution effects induced by changing wages and prices (including child care subsidies). If some part of a family income change is due to changes in labor supply, this will have implications for child development (see, e.g., Bernal, 2008; Bernal and Keane, 2010, 2011; Del Boca et al, 2012; Gayle et al, 2013). Higher levels of parental permanent income are associated with higher levels of parental education, better schools, more capable parents, better peers, more engaged parenting, etc.…”