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Open Access

The Effect of Household Earnings on Child School Mental Health Designations

Evidence from Administrative Data

Lauren Jones, View ORCID ProfileMark Stabile, Kourtney Koebel and Jill Furzer
Journal of Human Resources, April 2024, 59 (S) S41-S76; DOI: https://doi.org/10.3368/jhr.1222-12705R2
Lauren Jones
Lauren E. Jones is an associate professor in the Glenn College of Public Affairs at The Ohio State University.
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Mark Stabile
Mark Stabile is the James M. and Cathleen D. Stone Distinguished Chair in Wealth Inequality and Professor of Economics at INSEAD and CEPR (corresponding author: .
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Kourtney Koebel
Kourtney Koebel is a postdoctoral fellow in the Department of Economics and the Institute for Gender and the Economy at the University of Toronto.
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Jill Furzer
Jill Furzer is a Senior Economist at Keystone Strategy.
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  • Figure 1
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    Figure 1

    Proportion of British Columbia School Children with an In-School Mental Health Special Need, by Year

    Source: British Columbia Ministry of Education Public School Administrative Data File.

    Notes. The sample includes children born between 1993 and 2000 and aged 6–17 in years 2002–2015. Indicators created by authors according to the Special Education Needs (SEN) classification and equal one if a child has ever been classified as having the corresponding SEN.

  • Figure 2
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    Figure 2

    Event Study Estimates of the Trajectory of Earnings among Children in Households with a Household Earnings Loss

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. The sample includes children born between 1993 and 2000 and aged 6–17 in years 2002–2015, after propensity score matching. Residual values derived from regressions including controls for family size, number of earners, average parent age, child age fixed effects, child grade fixed effects, as well as child, year, and school fixed effects. The gray vertical bars represent the 95 percent confidence intervals, which are based on within-household cluster-robust standard errors.

  • Figure 3
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    Figure 3

    Event Study Estimates of the Trajectory of Mental Health Designations among Children in Households with a Household Earnings Loss

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. The sample includes children born between 1993 and 2000 and aged 6–17 in years 2002–2015, after propensity score matching. Mental health indicators created by authors according to the Special Education Needs (SEN) classification and equal one if a child has ever been classified as having a mental health condition. Residual values derived from regressions including controls for family size, number of earners, average parent age, child age fixed effects, child grade fixed effects, as well as child, year, and school fixed effects. The gray vertical bars represent the 95 percent confidence intervals, which are based on within-household cluster-robust standard errors.

  • Figure 4
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    Figure 4

    Event Study Estimates of the Trajectory of Mental Health Designations among Children in Households with a Household Earnings Loss

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. See Figure 2. Moderate reflects ever having received a designation for moderate behavior support or mental health conditions. Severe reflects ever having received a designation for intervention or serious mental health illness.

  • Figure 5
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    Figure 5

    Event Study Estimates of the Trajectory of Mental Health Designations among Children in Households with a Maternal Earnings Loss

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. See Figure 4. Panel A includes children whose mothers had positive permanent earnings. Panel B includes children whose mothers had positive earnings in 2006.

  • Figure 6
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    Figure 6

    Event Study Estimates of the Trajectory of Mental Health Designations among Children in Households with a Household Earnings Loss, by Child Demographics

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. See Figure 4. Treatment is 5,000 CAD loss relative to 2002–2006 permanent income.

  • Figure 7
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    Figure 7

    Event Study Estimates of the Trajectory of Placebo Health Designations among Children in Households with a Household Earnings Loss

    Source. British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    Notes. See Figure 4. Treatment is 5,000 CAD loss relative to 2002–2006 permanent income.

Tables

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    Table 1

    Summary of Treatment Variables

    Treatment Defined Using Baseline Permanent IncomeTreatment Defined Using Baseline 2006 Income
    Absolute Loss (at Least)
    $5,000XX
    $10,000XX
    $15,000XX
    Percent Loss (at Least)
    50%XX
    90%XX
    Standard Deviation Loss (at Least)
    0.5 SDX
    0.75 SDX
    • Source: Authors.

    • Notes: Summary of treatment definitions. Dollar values are in Canadian dollars.

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    Table 2

    Summary Statistics

    No LossAny Loss
    MeanSDMeanSD
    Average over All Years
    Any mental health illness0.0320.1770.0420.202
    Moderate mental health0.0210.1440.0270.163
    Severe mental health0.0180.1320.0240.153
    Autism diagnosis0.0080.0910.0090.094
    Physical disorder0.0050.0730.0060.076
    Child age11.7273.22511.7353.221
    Grade6.6953.2206.6913.212
    Attends public school0.8890.3140.8830.321
    Average over 2002–2006
    Any mental health illness0.0200.1390.0250.157
    Moderate mental health0.0120.1100.0160.124
    Severe mental health0.0110.1050.0140.118
    Autism diagnosis0.0050.0710.0050.070
    Physical disorder0.0050.0700.0050.072
    Transfer income (tax system)$3,500$4,000$3,700$4,200
    2006 Average
    Average household earnings$66,300$50,000$53,200$53,400
    Number of household earners1.5170.6131.3870.652
    Number of parents1.7380.4401.6710.470
    Family size4.1421.1514.1011.271
    Mom working0.8900.3130.9250.263
    Average age of parents40.7645.65440.7546.329
    Asian language at home0.2000.4000.2220.415
    Non-English or non-Asian language at home0.0920.2890.0920.289
    Indigenous0.0940.2910.1300.336
    Birth year19962.27719962.277
    Gender (Male)0.5120.5000.5150.500
    Number of children (rounded to base 10)172,00079,660
    N (rounded to base 10)1,859,630863,930
    • Source: British Columbia Ministry of Education Public School Administrative Data File.

    • Notes. The sample includes children born between 1993 and 2000 and aged 6–17 in years 2002–2015. The no loss group includes children whose families did not lose any income in 2008 or 2009 relative to 2002–2006 permanent income, and the any loss group includes children whose families did lose. Dollar values (in nominal CAD) rounded to base 100 as per vetting rules.

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    Table 3

    Summary of Earnings across Loss Variables

    Treatment Defined Using Baseline Permanent IncomeTreatment Defined Using Baseline 2006 Income
    $5K Loss50% Loss0.5 SD Loss$5K Loss50% Loss
    Share of households with loss0.22930.14970.24560.31340.1412
    Average baseline earnings, control group$57,400$33,300$50,800$73,200$47,600
    Average baseline earnings, treatment group$58,400$32,300$50,900$76,200$49,400
    Average SD perm earnings, control group$16,300$13,300$13,600
    Average SD perm earnings, treatment group$16,900$13,500$13,600
    Average 2008/2009 earn change (rel. baseline), control group$22,900$14,800$18,700$14,500$6,800
    Average 2008/2009 earn change (rel. baseline), treatment group–$25,200–$25,800–$23,000–$28,600–$37,700
    Average earnings across all years, control group$79,100$48,200$69,000$85,600$55,400
    Average earnings across all years, treatment group$55,500$27,500$48,100$65,400$35,100
    • Source: British Columbia Ministry of Education Public School Administrative Data File.

    • Notes. Average earnings are computed for the matched samples. Dollar values (in nominal CAD) rounded to base 100 as per vetting rules. Sample includes children born between 1993 and 2000 aged 6–17 in years 2002–2015.

    • View popup
    Table 4

    Effect of Household Earnings on Any New Mental Health Designation Using Bartik Instrument

    OverallBottom QuartileSecond QuartileThird QuartileTop Quartile
    (1)(2)(3)(4)(5)
    Embedded Image ($1,000)−0.0011**0.00190.0041−0.0023**0.0001
    (0.0005)(0.0019)(0.0062)−0.0011(0.0005)
    First stage
    Bartik instrument30.9336***−18.7471***−5.879622.7483***38.6872***
    (4.2429)(4.3107)(5.5387)(6.4020)(13.9048)
    Average household income (2006)$14,800$43,700$75,300$133,400
    First-stage F-statistic53.1518.911.1312.637.74
    N2,677,080606,401619,640626,860626,950
    • Source: British Columbia Ministry of Education Public School Administrative Data Files and linked T1FF tax file.

    • Notes: The sample includes children born between 1993 and 2000 aged 6–17 in years 2002–2015. Results of estimating Equations 3 and 4. Covariates include average age of tax-filers, indigenous status, home language other, home language Asian, and gender. The model also includes kid, FSA, year, age, grade, school, family size, number of earners, number of tax-filers and school type fixed effects. Standard errors are clustered at family level. Quartiles are defined using 2006 household employment income. Dollar values rounded to base 100 as per vetting rules. *p < 0.10, **p < 0.05, ***p < 0.01.

Additional Files

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  • Free alternate access to The Journal of Human Resources supplementary materials is available at https://uwpress.wisc.edu/journals/journals/jhr-supplementary.html





    • 1222-12705R2_repmat.zip
    • 1222-12705R2_supp.pdf
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Journal of Human Resources: 59 (S)
Journal of Human Resources
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1 Apr 2024
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The Effect of Household Earnings on Child School Mental Health Designations
Lauren Jones, Mark Stabile, Kourtney Koebel, Jill Furzer
Journal of Human Resources Apr 2024, 59 (S) S41-S76; DOI: 10.3368/jhr.1222-12705R2

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The Effect of Household Earnings on Child School Mental Health Designations
Lauren Jones, Mark Stabile, Kourtney Koebel, Jill Furzer
Journal of Human Resources Apr 2024, 59 (S) S41-S76; DOI: 10.3368/jhr.1222-12705R2
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