Journal Article

The Economic Costs of Childhood Disability

Stabile, Mark, Allin, Sara

2012

Overview

Childhood disabilities entail a range of immediate and long-term economic costs that have important implications for the well-being of the child, the family, and society but that are difficult to measure. In an extensive research review, Mark Stabile and Sara Allin examine evidence about three kinds of costs—direct, out-of-pocket costs incurred as a result of the child s disability; indirect costs incurred by the family as it decides how best to cope with the disability; and long-term costs associated with the child's future economic performance. Not surprisingly, the evidence points to high direct costs for families with children with disabilities, though estimates vary considerably within these families. Out-of-pocket expenditures, particularly those for medical costs, for example, are higher among families with children with a special health care need. An important indirect cost for these families involves decisions about employment. Stabile and Allin examine several studies that, taken together, show that having a child with disabilities increases the likelihood that the mother (and less often the father) will either curtail hours of work or stop working altogether. Researchers also find that having a child with disabilities can affect a mother s own health and put substantial strains on the parents' relationship. In the longer term, disabilities also compromise a child's schooling and capacity to get and keep gainful employment as an adult, according to the studies Stabile and Allin review. Negative effects on future well-being appear to be much greater, on average, for children with mental health problems than for those with physical disabilities. Stabile and Allin calculate that the direct costs to families, indirect costs through reduced family labor supply, direct costs to disabled children as they age into the labor force, and the costs of safety net programs for children with disabilities average $ 30,500 a year per family with a disabled child. They note that the cost estimates on which they base their calculation vary widely depending on the methodology, jurisdiction, and data used. Because their calculations do not include all costs, notably medical costs covered through health insurance, they represent a lower bound. On that basis, Stabile and Allin argue that many expensive interventions to prevent and reduce childhood disability might well be justified by a cost-benefit calculation.

• Publisher: Woodrow Wilson School of Public and International Affairs at Princeton University and the Brookings Institution,Princeton University,Princeton University-Woodrow Wilson School of Public and International Affairs,Woodrow Wilson School of Public and International Affairs at Princeton University and The Brookings Institution
• Subject: Access to Education / Adolescent / Adult / Asthma / Attention Deficit Disorder with Hyperactivity - economics / Attention deficit hyperactivity disorder / Averages / Care and treatment / Census of Population / Child / Child Behavior Disorders - economics / Child care / Child Health / Child, Preschool / Childhood / Children / Children & youth / Children with disabilities / Childrens health / Chronic illnesses / Computation / Coping / Cost benefit analysis / Cost estimates / Cost of Illness / Costs / Costs and Cost Analysis / Decision making / Disabilities / Disability / Disability studies / Disabled Children / Economic aspects / Economic conditions / Economic costs / Economic Impact / Economic models / Economic performance / Education, Special - economics / Employment / Employment Level / Families & family life / Family / Family (Sociological Unit) / Family Environment / Fathers / Financing, Personal - economics / Handicapped / Health Care Costs / Health Care Costs - statistics & numerical data / Health care expenditures / Health care industry / Health Expenditures - statistics & numerical data / Health Insurance / Health problems / Health services / Health Services Needs and Demand - economics / Human Capital / Humans / Income / Indirect costs / Infant / Infant, Newborn / Investments / Jurisdiction / Labor / Labor Force / Labor Market / Labor Supply / Literature Reviews / Long term / Medical care, Cost of / Medical decision making / Medical Services / Mental disorders / Mental Health / Mental health services / Models, Economic / Mothers / Parent-child relations / Parents / Pediatrics / People with disabilities / Personal expenditure / Physical Disabilities / Physically Handicapped / Social aspects / Social security / Socioeconomic Factors / Stress Variables / United States / Well Being / Women, Working - statistics & numerical data / Working Hours / Working mothers / Young Adult / Young Children