ECONOMIC DEPRIVATION AND EARLY-CHILDHOOD DEVELOPMENT

We consider 3 questions regarding the effects of economic deprivation on child development. First, how are developmental outcomes in childho od affected by poverty and such poverty correlates as single parenthoo d, ethnicity, and maternal education? Second, what are the development al consequences of the duration and timing of family economic deprivat ion? And, third, what is the comparative influence of economic depriva tion at the family and neighborhood level? We investigate these issues with longitudinal data from the Infant Health and Development Program . We find that family income and poverty status are powerful correlate s of the cognitive development and behavior of children, even after ac counting for other differences-in particular family structure and mate rnal schooling-between low- and high-income families. While the durati on of poverty matters, its timing in early childhood does not. Age-5 I Qs are found to be higher in neighborhoods with greater concentrations of affluent neighbors, while the prevalence of low-income neighbors a ppears to increase the incidence of externalizing behavior problems.