7. Policy Implications
This research has a number of broad policy implications, bearing in mind that there may be some weaknesses to the model, the most important of which is the fact that the data we have used cover only a very short span of time, from 1994 to 1996. Until we have a longer view over an extended period of time, our results can only be considered as preliminary. Nonetheless, our research results show, as previous work in America has found, that the direct effect of income on children's developmental outcomes varies from moderate to relatively weak as more controls are applied.
Our findings, even though showing a relatively weak relationship between income and children's developmental outcomes, can provide some support for continuing to invest funds in direct transfers to lower income families. As Mayer (1997) points out, while the effect of income on any single child outcome may be relatively small, the cumulative effect of higher income over a broad range of outcomes may in fact be quite substantial. Our findings show that income does have a relatively weak to moderate effect across a range of developmental outcomes that could be cumulative. However, Blau (1999) maintains that we cannot avoid these weak relationships. One of the consequences of this is that Blau suggests that rather than providing direct transfers to families governments should instead put greater investment in the provision of health and education to parents and children as a way to get better child development outcomes.
Our data regarding the proportion of children living in persistent poverty over the 1994 to 1996 period, suggests that the income security of some children is at greater risk than others. Indeed, Duncan et al. (1998) contend that the use of income transfers to eliminate the deepest and most persistent poverty for children in these circumstances is very important since this will lead to better child outcomes. It would seem prudent therefore that policies be aimed at least at maintaining the current level of transfers to the poorest families with children. If there are to be changes to direct transfers then the suggestion by Duncan et al. (1998) and Blau (1999) that there be resources allocated to the poorest families with children to lend support for health and education, seems wise.
Given the importance of the relationship between income and the home environment variable and the
likelihood that this has an effect on children's outcomes, it would also be sensible to investigate if there are possible avenues by which this could be supported. It may be possible to investigate ways to provide for better home environments for children. The variables composing the home environment variable include literacy, children's activities and parents participating in their children's lives. Policies which aid these activities either directly or otherwise, would aid in furthering children's well-being. These could include literacy policies, or providing environments conducive to parent-child interaction, such as recreational areas or even policies which make it easier for families to spend time together.
What's New
