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Publication Date

2025-5

First Advisor

Lucie Schmidt

Document Type

Honors Project

Degree Name

Bachelor of Arts

Department

Economics

Keywords

foster care, families, Social Security Act

Abstract

As the number of children in foster care far exceeds the availability of licensed homes, states seek to increase the number of families who participate, often through maintenance payments—the financial support families receive to offset the costs of care. This thesis examines whether such payments incentivize families to foster and how they impact the quality of care they provide. Using data from the American Community Survey, I find a statistically significant negative relationship between the stipend amount and the chance a family becomes a foster family. As this finding is inconsistent with previous literature, I use the Adoption and Foster Care Reporting System (AFCARS) to apply a second analysis of the supply of families. The result harmonizes the present findings with prior ones, showing that an increase in the stipend increases the capacity for children in foster care by increasing the number of children cared for by relatives. Next, to assess quality of care, I analyze data from AFCARS on placement stability and the length of time a child spends in care. Results suggest that increases in payments correspond to decreases in the quality of care children receive. The research concludes that while the foster care system is in need of systemic change, increasing maintenance payments is likely not an effective approach.

Rights

©2025 Elizabeth von der Heydt. Access limited to the Smith College community and other researchers while on campus. Smith College community members also may access from off-campus using a Smith College log-in. Other off-campus researchers may request a copy through Interlibrary Loan for personal use.

Language

English

Comments

68 pages: color charts. Includes bibliographical references (pages 45-49).

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