STATE INTERVENTION IN IMPERFECT FAMILIES

Abstract

This paper revisits state intervention in families on behalf of children rather than on behalf of parents. Drawing upon the theory of comparative advantage, the study argues that the reported rise in child abuse and neglect results from parents' lacking the absolute minimum levels of skills needed to sustain a family, not from parents' lacking altruism for children. The analysis has implications for child welfare policies and the sorts of welfare programs families should receive, and questions the efficacy of costly child protection programs. Interestingly, applying the theory of comparative advantage to this unfortunate aspect of family life yields similar conclusions to those reached by others. Most significantly, akin to past studies, this study concludes that the state faces an `agency problem' when it intervenes on behalf of maltreated children, because it cannot fully monitor parents judged as incompetent at raising their children.