How Does Household Income Affect Child Personality Traits and Behaviors?

This article investigates the causal effects of household income on children’s emotional health, behavioral outcomes, and personality development. Using longitudinal data and a quasi-experimental unconditional income transfer, the authors find substantial improvements in children's emotional and behavioral well-being during adolescence, along with positive changes in personality traits. The effects are strongest among children who initially faced the greatest socioeconomic disadvantages. The study also finds evidence that improved parent-child relationships may serve as an important mechanism through which increased household income influences developmental outcomes. The findings contribute to understanding how economic resources shape child development and long-term human capital formation.