The best help for children from poor families is money. Such was the conclusion of economist Andrew Barr and his co-authors. They studied how various forms of assistance to families with children affect the income of these children in the long run. Children need money to pay taxes in the future. From our childhood we enjoyed games. Today, being adults, we can earn and play with 22 Bet. Enjoy!
USA Children
Barr proved his hypothesis about the influence of cash payments on the future incomes of children very ingeniously. In the US, if a baby in a low-income family is born in December, his parents receive a tax deduction in the form of a cash payment for the entire year. In which the child is born. If the baby is born a few weeks later, in January, then the parents receive such a deduction only next year. Thus, for families with “December children”, this cash transfer is available in the first year of a child’s life. And for families with “January children”, only in the second.
Barr and his co-authors collected and studied data on 625,000 Americans born in December 1981, 1986, and 1991. Their parents received payments from the tax deduction in the first year of the life of the babies. The control group included people who were born in January 1982, 1987, and 1992, respectively. To simplify calculations, only firstborns were included in the sample.
School Performance In Adult Life
The researchers compared the school performance of children from the first and second groups and compared the level of salaries in the two groups at 23-25, 26-28 years old, and, for the oldest sample, at 32-34 years old.
“December children” showed higher results on school tests in mathematics and reading and more often completed their secondary education. At ages 23-25, participants in the experimental group earned an average of $319 more per year than their peers in the control group, at ages 26-28 they earned $456 more, and as age increases, the difference with the control group continues to widen.
In addition, scientists have found that receiving payment immediately after the birth of a baby correlates with a subsequent increase in the earnings of parents. 3-4 years after the birth of a child, the income of families with “December children” increased by 10-20% (on average by $ 1000). For the well-being of such families, this had long-term positive consequences.
How Does It Work?
Additional payments “insure” parents from financial problems. It allows them to experience less work-related stress and devote more time to their child. It also positively affects his development at a critical stage in the formation of character and abilities. And it was about very little money!
Tax Returns
According to tax returns used by Barr, a family’s first year of a child’s payment increased its annual income by an average of $1,300, or 10%. In terms of the average lifetime income of a family, this is only 0.2%. However, even this relatively small increase in income significantly affected the quality of human capital of children from such families and their economic success in adulthood.
After calculating the earnings of the “December children” and their total tax payments, economists concluded that the return on “investing in babies” exceeds the initial budget investment. It grows as the transfer amounts themselves increase. On average, an additional $1,000 received by a child’s family in his early childhood increases his earnings at age 23–25 by 1.2–1.3%, by 32–34 by 3–4%, and then, according to calculations, the effect continues. increase.
But the most interesting thing is that the return on cash transfers turned out to be higher than programs that do not involve direct transfers to families. But reduce their expenses, such as in which the government compensating low-income families for part of the costs.
Real money is the most reliable help.
Disclaimer: Content provided in this article is for informational purposes only and should not be considered as a substitute for professional advice. Gambling involves an element of financial risk and may be addictive. Please play responsibly and at your own risk. This post contains material that may or may not be legal in your country. Please play/not play subject to applicable law.