Employment outcomes of former foster youth as young adults: The importance of human, personal, and social capital

In spite of a prevailing policy focus, little is known about the employment outcomes of former foster youth during early adulthood and the factors associated with those outcomes. We explore how former foster youth who aged out of care in Illinois, Wisconsin, and Iowa are faring in the labor market at age 24 and what explains variability in employment and wages for these youth. We utilize multilevel models to analyze youth's employment using four waves of the Midwest Study. Our findings point to a critical need to better understand and address barriers to education, causes of substantial racial disparities, and characteristics of family foster homes that facilitate youths' employment. We find that youth who remain in care past age 18 attain higher educational credentials which translate into better employment outcomes. This research also highlights the need for policies directed at current and former foster youth who become early parents.

► We examine employment and wage outcomes for foster youth who age out of care. ► We find substantial racial disparities and variation by youths' experiences in care. ► Positive employment outcomes for young women are constrained by parenting. ► Positive outcomes for young men are constrained by criminal justice involvement. ► Remaining in care after age 18 improves employment outcomes through education.