1 Transmission of Socio- economic Inequalities Paul Gregg, Carol Propper and Liz Waskbrook ALSPAC User Group

2 Transmission of Socio- economic Inequalities Growing evidence that children of poorer families suffer penalties not just in terms of schooling but also health and behaviour (e.g. Propper and Rigg CP105, CP 125). How does low income translate into these poorer outcomes? Do the mediating influences differ across outcomes?

3 Overview Aim: to compare and contrast the importance of different risk factors including income in accounting for the gaps between low and higher income children Examine range of different middle childhood outcomes –IQ, School performance, locus of control, self esteem, behavioral problems, risk of obesity (age 9) Use ALSPAC cohort (c 9000 children born in 1991/2 in Avon)

4 Research questions Which aspects of the environments of low income children matter for each outcome? [Proximal factors] Which types of low income family do worst in fostering each outcome? [Distal factors] Are the adverse environments that matter related to particular family characteristics? Estimate a model which decomposes the association of income with these factors on the outcomes Unified model across range of outcomes and large set of distal and proximal factors

5 Modelling framework βα Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Distal factors or family characteristics (C) (e.g. household composition, parental education) γ θ λ π

6 Proximal factors Factors that capture the environment, or lived experience, of the child and that vary with family income: –Parental psychological functioning: Anxiety/ depression, weighted life events, financial difficulties, parental relationship, frequency of smacking, social networks, locus of control –Preschool childcare: Type and intensity, between birth and age 3, between age 3 and school entry –Health at birth and health behaviours: Birth weight and gestation, parental smoking, breastfeeding, diet at age 3 –Home learning environment: Books and toys, maternal teaching, educational outings, mothers and partners reading and singing with child –Physical home environment: Car ownership, garden, noise, crowding, damp/mould –School peer quality: Fixed effects

7 Family characteristics Factors associated with income that independently influence the proximate environment of the child, but that do not impact on children directly (distal factors): Family structure and life cycle: Single parenthood, siblings, mothers age Parental labour market status: Mothers and partners employment and occupational class Family education: Mothers, partners and maternal grandparents qualifications Local environment: Local deprivation, social (public) housing

8 Decomposition I Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

9 Decomposition II Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

10 Decomposition III Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

11 The income gradient Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) δ O ij = cons + δ j Y i + e ij for the jth outcome of the ith child

12 The income gradient Low income children are cognitively, emotionally and physically disadvantaged compared with their better off counterparts Gradients steeper for cognitive than other outcomes Childs Locos of Control has an intermediate gradient

13 Outcomes standardized to mean 100, SD 10. Coefficients on adverse outcomes reversed, such that higher scores = more favourable outcomes. p < 0.01 for all gradients

14 Decomposition I Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

15 Table 1: Income, proximal factors and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

16 Table 2: Income, health behaviors and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

17 Table 3: Income, preschool childcare and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

18 Table 4: Income, the physical home environment and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

19 Decomposition II Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

20 Income, family education and child outcomes

21 Decomposition III Proximal factors (P) (e.g. parental psychological functioning, health behaviors, home learning environment, school choice) Child outcome at age 7, 8 or 9 (O) (Ln) family income at age 3 & 4 (Y) Family characteristics (C) (e.g. household composition, parental education)

22 Findings I Multiple aspects of the environments in which low income children are raised are associated differentially with poorer outcomes – no magic bullet Lack of income is only one of a number of disadvantages faced by poor children. The association of low education of parents with outcomes for low income children is particularly important Observed proximal factors are more strongly associated with the income gaps in socio-emotional and health outcomes than in cognitive outcomes

23 Findings II The role of non-home environments such as child care and schools in generating inequality is very minor compared with the family environment The psychological stresses associated with raising a child on a low income are important in generating greater behavioral problems among poor children, but are also associated with a higher risk of obesity and poorer scholastic outcomes Poorer health behaviors (smoking, diet fed to children) among low income parents are an important pathway through which poorer health, behaviour and scholastic outcomes are transmitted. Determinants of IQ and school performance are not the same: IQ deficits are explained more by parental education (proxying inherited ability?), while local neighbourhood matters more for academic outcomes (peer effects?)

24 Findings III Not everything about higher income lifestyles is beneficial for children. Full time maternal employment/early child care are associated with poorer behavioural outcomes, car ownership and educationally-oriented home environments are associated with greater risk of obesity

25 Additional slides

26 Table 5: Income, family characteristics and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

27 Table 6: Income, family structure and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

28 Table 7: The residual income gradient, proximal factors and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

29 Table 8: Income, family education, proximal factors and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

30 Table 9: Income, the local environment, proximal factors and child outcomes Numbers are % of total income gradient. Stars relate to test of significance of underlying coefficient.

31 Appendix

32 Income, maternal psychological functioning and child outcomes

33 Income, the home learning environment and child outcomes

34 Income, parental labour market status and child outcomes

35 Income, family education and child outcomes

36 Income, local environment and child outcomes

37 Income, family structure, proximal factors and child outcomes

38 Income, parental labour market status, proximal factors and child outcomes

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