Children’s Emotional and Behavioral Problems and Their Parents’ Labor Supply Patrick Richard, Ph.D., M.A. Nicholas C. Petris Center on Health Markets and Consumer Welfare University of California Berkeley School of Public Health APHA th Annual Meeting

INTRODUCTION/BACKGROUND  Concerns over the effects of High prevalence of children’s emotional and behavioral problems (EBP) on society, communities, schools and families  Annual prevalence rates vary from 13 to 20% Dramatic changes in family structures  Currently, about 30% of all children live with a single parent in the U.S.

INTRODUCTION/BACKGROUND Children in single parent families are more likely to develop EBP compared to their peers living in two-parent families (Lefebvre and Merrigen, 1998; Dooley et al., 1998) o Annual prevalence rates of 40% of children’s EBP in low- income and single-parent households o Yet, children with mental disorders impose additional time and financial constraints on their family As a result, parents with these children may choose not to participate in the labor force or reduce their work hours

INTRODUCTION/BACKGROUND  Previous Studies in the Health Economics Literature: The effects of children’s chronic health problems, disabilities, activity or school related limitations or functional impairment on parental employment Labor Supply of Single Mothers - most commonly examined Only a few of these studies have considered the recent changes in family structure such as cohabitation A few have accounted for the potential endogeneity between children’s health and parental employment

INTRODUCTION/BACKGROUND No studies have investigated the effects of children’s EBP on parental work activities Model mothers and fathers’ work decisions jointly Account for potential endogeneity between children’s EBP and parents’ work activities

RESEARCH QUESTION & MODEL  How do children and adolescents with emotional and behavioral problems influence the labor supply of their single parents compared to their married or cohabitating parents? Child’s Characteristics EBP Functional Impairment Parent’s Characteristics Mental Health Status LFP Work Hours Family SES Income Mediating Variables Family Structure Childcare Treatment Moderating Variables Conceptual Framework EBP Family Structure Work Activities

DATA o The Child Development Supplements (CDS I in 1997 & CDS II in 2002): 3-18 years old o The Panel Study of Income Dynamics (PSID) o An ongoing panel survey of individuals and families since 1968 PSID core : Family and Individual files : years old Sample size (Pooled data)  Single mothers : N=1084  Married Mothers & Fathers: N=2750

DATA o EBP: The Behavior Problems Index (BPI) - A 30-item parent reported scale developed by Peterson & Zill (1986)  Selected from the Achenbach Behavior Problems Checklist  Divided into two subscales: externalizing behaviors (13 items) internalizing behaviors(16 items)  The scores vary from 0 to 27  Higher scores imply negative outcomes

DATA

METHODS – Estimation Strategy  RQ-I : How do children and adolescents with emotional and behavioral problems influence the labor force participation of their single parents compared to their married or cohabitating parents?  LFP Model:  Bivariate probit model Vs Univariate probit and LPM (2SLS- OLS)

METHODS - Estimation Strategy  Assume that the error terms in both equations are normally distributed and are correlated  Adjust S.E. using the Huber-White method to account for correlation between observations from the same family  Convert the coefficient estimates from the non-linear models to "marginal effects"

METHODS  RQ-II : How do children and adolescents with emotional and behavioral problems influence the work hours of their single parents compared to their married or cohabitating parents?  W Hours Model:  Work Hours : Tobit, IV Tobit, and 2SlS

RESULTS – Descriptive Statistics  Singe-mothers Vs Married mothers*** Higher Employment, Work Hours and children with EBP***  LFP: 84% Vs 73%  WH:1413(944) Vs 1261(931)  EBP: 20% Vs 13% Lower SES***  Family Income: 2k (2) Vs 7k (8)  Education : 12 yrs Vs 13yrs More likely to be***  Younger:37 yrs Vs 38 yrs  Black : 71% Vs 24%  Poor/fair health :17% Vs 8%  Functional impairment :12% Vs 8% Children living in single parent households are more likely***  Public insurance: 45% VS 11%  Poor/fair health :4% Vs 2%  Functional impairment: 8% Vs 5% ***P<.000

MULTIVARIATE RESULTS - LFP

MULTIVARIATE RESULTS – Work Hours

Policy Implications  Focus on policies to improve LS of Mothers  Preventive intervention programs for children with EBP  Provide targeted counseling and mental health services to these children at schools and community health centers  Parental assistance with child care and employment flexibility

Conclusions  Evidence that children’s EBP negatively impact their single and married mothers’ labor supply—Simultaneity b/w the two  Magnitude and direction of the effects are similar to those of children with chronic physical conditions on single mothers’ LFP & W Hours and Married Mothers’ LFP  Effects are greater on married mothers’ LFP (consistent with the literature on children’s physical disabilities) Fathers provide flexibility in terms of Financial resources Not eligible for child care assistance

Conclusions and Implications for Future Research  But, once married mothers supply their labor, they tend increase their work hours as a result of children’s EBP May be due to additional expenses– Medical & Child care  No Effects on Fathers’ Labor Supply  The impact of intervention programs or treatments of childhood’s EBP on single mothers labor market outcomes?