Children living out-of-home: Effects of family and environmental characteristics

This paper uses data from the NLSY to estimate the effects of income, family structure, and public policies on the probability that a mother has children living in various out-of-home settings. Results suggest that lower-income mothers and those living in single-parent and mother–partner families are more likely to have children living out-of-home in a given year than are mothers in higher-income and mother–father families. Higher welfare benefits are associated with decreased probabilities that children are living in service settings, but increased probabilities that they are living with relatives. Higher foster care payments are associated with increased service setting placements.