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| Greater economic stability helps families, and children, thrive / Photo: Mike Keran, CC BY 2.0 |
A study newly released by the National Bureau
for Economic Research has HUGE implications for US social policy.
And it's all thanks to an accidental natural experiment.
Four years into a ten-year study of 1,430 rural kids' mental
health in North Carolina, the Eastern Band of Cherokees built a casino.
A quarter of the children being studied were affiliated with the tribe,
which decided to distribute at least some casino profits as annual per
capita payments. The tribe paid out about $4,000 per person per year, or
$16,000/yr for a family with four enrolled tribal members. The per
capitas boosted the families' incomes by just under 20% on average.
The impact on these children's mental health and their
development of pro-social personality traits was substantial. The
stabilizing effect of the payments helped reduce family discord, promoted
marital cohesion, and resulted in reduced alcohol abuse rates among parents
receiving the boost in income, all of which made positive, lasting impacts on
the kids. And the children who'd been struggling the most benefited the
most.


