The effects of persistent poverty on children’s outcomes

1. The effects of persistent poverty on children’s outcomes Dr Jung-Sook Lee University of New South Wales

2. Purpose of study • To examine the effects of persistent poverty on Australian children’s physical, socio-emotional, and learning development • To examine whether the effects of persistent poverty on children’s development differ by cohort (baby & kindergartner)

3. Backgrounds • According to a recent OECD study, the rate of child poverty in Australia is about 11.6% in 2000s (Whiteford & Adema, 2007) • Persistent poverty has a significant effect on children’s outcomes • The timing of poverty is also important • The effect of poverty differs by outcomes • The evidence in Australia has been limited until recently due to the lack of longitudinal datasets available

4. Data • The Longitudinal Study of Australian Children (LSAC): Growing Up in Australia • The first ever comprehensive, national Australian data on children • Over 10,000 children and their families were first interviewed in 2004 and will be biannually interviewed until 2010 • Two cohorts • Baby cohort: 0-1years at Wave 1 • Kindergartner cohort: 4-5 years at Wave 1 • For this study, used B-cohort & K-cohort and Wave 1 & 2

5. Measures • Outcomes • Physical, socio-emotional, & learning domains at Wave 2 • Poverty status through two waves • Persistently poor • Out of poverty • Fell into poverty • Never been poor • Covariates • Age, sex, indigenous status, language at home, parental education, mother’s age, & mother’s marital status

6. Analysis • Multiple regression • Separate regression model for each cohort

7. Sample 1

8. Sample 2

9. Results: B–cohort (selected) Note: Reference group: Never been poor. *< .05, **<.01, *** < .001

10. Results: K–cohort (selected) Note: Reference group: Never been poor. *< .05, **<.01, *** < .001

11. Discussions • Significantly negative effects of persistent poverty on socio-emotional and learning outcomes exist for both cohorts • The effects of persistent poverty are greater for k-cohort • The effect of current poverty on socio-emotional outcome for b-cohort • The effect of early poverty on learning outcome for k-cohort • Mixed results for the physical outcome

12. Limitations • Attrition • The distribution of physical domain score • Missing on income • Relative poverty measure • Only two waves

13. Implications • Supports for the most vulnerable populations (persistently poor) are needed • Actions to relieve poverty in early childhood may enhance outcomes of children, especially learning outcome • In researching the effects of poverty on children’s outcomes, the timing, duration, & depth of poverty need to be considered • Studies investigating longitudinal trajectories would provide clearer pictures

14. References • Australian Institute of Family Studies (2008). Longitudinal Study of Australian Children Data User Guide. May 2008, Melbourne. • Bradbury, B. (2007). Child outcomes and family socio-economic characteristics. Social Policy Research Centre. • Brooks-Gunn, J., & Duncan, G. J. (1997). The effects of poverty on children. Future of Children, 7, 55-71 • Whiteford, P., & Adema, W. (2007). What works best in reducing child poverty: A benefit of work strategy? (OECD Social, Employment and Migration Working Papers No. 51). Paris: OECD.