Sunday, January 19, 2014

What happens when the poor receive a stipend

http://economistsview.typepad.com/economistsview/2014/01/what-happens-when-the-poor-receive-a-stipend.html

http://opinionator.blogs.nytimes.com/2014/01/18/what-happens-when-the-poor-receive-a-stipend/?_php=true&_type=blogs&_r=0

January 18, 2014
By MOISES VELASQUEZ-MANOFF

Growing up poor has long been associated with reduced educational attainment and lower lifetime earnings. Some evidence also suggests a higher risk of depression, substance abuse and other diseases in adulthood. Even for those who manage to overcome humble beginnings, early-life poverty may leave a lasting mark, accelerating aging and increasing the risk of degenerative disease in adulthood.

Today, more than one in five American children live in poverty.

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So when, in 1996, the Eastern Band of Cherokee Indians in North Carolina’s Great Smoky Mountains opened a casino, Jane Costello, an epidemiologist at Duke University Medical School, saw an opportunity. The tribe elected to distribute a proportion of the profits equally among its 8,000 members. Professor Costello wondered whether the extra money would change psychiatric outcomes among poor Cherokee families.

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The poorest children tended to have the greatest risk of psychiatric disorders, including emotional and behavioral problems. But just four years after the supplements began, Professor Costello observed marked improvements among those who moved out of poverty. The frequency of behavioral problems declined by 40 percent, nearly reaching the risk of children who had never been poor. Already well-off Cherokee children, on the other hand, showed no improvement. The supplements seemed to benefit the poorest children most dramatically.

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She and her colleagues kept following the children. Minor crimes committed by Cherokee youth declined. On-time high school graduation rates improved. And by 2006, when the supplements had grown to about $9,000 yearly per member, Professor Costello could make another observation: The earlier the supplements arrived in a child’s life, the better that child’s mental health in early adulthood.

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What precisely did the income change? Ongoing interviews with both parents and children suggested one variable in particular. The money, which amounted to between one-third and one-quarter of poor families’ income at one point, seemed to improve parenting quality.

By age 3, measures of vocabulary, working memory and executive function show an inverse relationship with the stressors experienced by parents.

These skills are thought important for success and well-being in life. Maternal warmth can seemingly protect children from environmental stresses, however; at least in these communities, parenting quality seems to matter more to a child than material circumstances. On the other hand, few parents managed high levels of nurturing while also experiencing great strain. All of which highlights an emerging theme in this science: Early-life poverty may harm, in part, by warping and eroding the bonds between children and caregivers that are important for healthy development.

Evidence is accumulating that these stressful early-life experiences affect brain development.

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Numerous animal studies, of course, show that early life stress can have lifelong consequences, and that maternal nurturing can prevent them.

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