Before and after out-of-home placement

Abstract

We investigate the short-term impact of the first placement in out-of-home care on child health, schooling and crime. Using administrative data and an event study, we document the development in outcomes for the average child in care. We find that primary health care utilization rises temporarily when entering care before returning to pre-intervention levels. School absenteeism and criminal charges decline markedly after placement and remain lower than preplacement levels within two years of placement. Using monthly data, we infer that the decision to place a child in care may be triggered by acute events such as hospitalization or criminality.