In the United States, child adoption costs vary considerably, ranging from no out-of-pocket expense to US$50,000 or more. What are the causes for the variability in adoption expenses? We administered a survey to a sample of Michigan adoptive families to link adoptive parent characteristics, child characteristics, and adoption-related expenses and subsidies. We then estimated “hedonic” regressions in which adoption cost is a function of child characteristics. The analysis shows that up to 74 percent of the variation in adoption costs is explained by child characteristics. In particular, costs are lower for older children, children of African descent, and special needs children. Findings inform policies regarding the transition of children from foster care to adoptive families.
AdamsScott J.2004. “Age Discrimination Legislation and the Employment of Older Workers.”Labour Economics11:219–41.
2.
ArgysLauraDuncanBrian. 2013. “Economic Incentives and Roster Child Adoption.”Demography50:933–54.
3.
BaccaraMariagiovannaCollard-WexlerAllanFelliLeonardoYarivLeeat. 2010. “Child-adoption Matching: Preferences for Gender and Race.”Working Paper No. 16444, National Bureau of Economic Research, Cambridge, MA.
4.
BaldwinMarjorieJohnsonWilliam G.1994. “Labor Market Discrimination against Men with Disabilities.”The Journal of Human Resources29:1–19.
5.
BarthRichard. 1997a. “Effects of Age and Race on the Odds of Adoption versus Remaining in Long-term Out-of-home Care.”Child Welfare76:285–309.
6.
BarthRichard. 1997b. “The Value of Special Needs Adoption.” In Adoption Policy and Special Needs Children, edited by AveryRosemary, 171–203. New York: Auburn House.
7.
BarthRichard P.LeeChung KwonWildfireJudithGuoShenyang. 2006. “A Comparison of the Governmental Costs of Long-term Foster Care and Adoption.”Social Service Review80:127–58.
8.
BejranondaSomskaowHitzhusenFredHiteDiane. 1999. “Agricultural Sedimentation Impacts on Lakeside Property Values.”Agricultural and Resource Economics Review28:208–18.
9.
BertrandMarianneMullainathanSendhil. 2004. “Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination.”American Economic Review94:991–1013.
10.
BlauFrancineBellerAndrea. 1992. “Black–White Earnings over the 1970s and 1980s: Gender Differences and Trends.”Review of Economics and Statistics74:276–86.
11.
BloomDavidGrenierGilles. 1992. “Earnings and the French Minority in Canada and the Spanish Minority in the United States.” In Immigration, Language, and Ethnicity, edited by ChiswickBarry, 373–409. Washington, DC: American Enterprise Institute Press.
12.
BramlettM. D.BrooksK. S.FosterE. B.SatoriousJ.FrasierA. M.SkallandB. J.2010. “Design and Operation of the National Survey of Adoptive Parents, 2007.”Vital Health Stat1:1–154.
13.
BrooksDevonSigridJames. 2003. “Willingness to Adopt Black Foster Children: Implications for Child Welfare Policy and Recruitment of Adoptive Families.”Children and Youth Services Review25:463–89.
14.
BrooksDevonBarthRichardBussiereAlicePattersonGlendora. 1999. “Adoption and Race: Implementing the Multiethnic Placement Act and the Interethnic Adoption Provisions.”Social Work44:167–78.
15.
CainGlen. 1986. “The Economic Analysis of Labor Market Discrimination: A Survey.” In Handbook of Labor Economics, edited by OrleyAshenfelterLayardRichard, 693–785. Amsterdam, the Netherlands: North–Holland.
16.
CarrDeborahFriedmanMichael A.2005. “Is Obesity Stigmatizing? Body Weight, Perceived Discrimination, and Psychological Well-being in the United States.”Journal of Health and Social Behavior September46:244–59.
17.
ChandraAnjaniJoyceAbmaPenelopeMazaBachrachChristine A.1999. “Adoption, Adoption Seeking, and Relinquishment for Adoption in the United States.”Advance Data11:1–16.
18.
EllingwoodJennifer. 2007. Adoption in Massachusetts: Private and Public Agency Placements and Practices in 2005: Issue Brief on Adoption Fees. Worcester, MA: Center for Health Policy and Research, University of Massachusetts Medical School.
19.
FamulariMelissa. 1992. “The Effects of a Disability on Labor Market Performance: The Case of Epilepsy.”Southern Economic Journal58:1072–87.
20.
FreemanA. Myrick III. 1979. “On Estimating Air Pollution Control Benefits from Land Value Studies.”Journal of Environmental Economics and Management1: 74–83.
21.
HammermeshDaniel S.BiddleJeff E.1994. “Beauty and the Labor Market.”American Economic Review84:1174–94.
22.
HansenMary E.2007a. “The Value of Adoption.”Adoption Quarterly10:65–87.
23.
HansenMary E.2007b. “Using Subsidies to Promote the Adoption of Children from Foster Care.”Journal of Family and Economics Issues28:377–93.
24.
HansenMary E.2008b. “The Distribution of a Federal Entitlement: The Case of Adoption Assistance.”The Journal of Socio-economics37: 2427–42.
PalmquistRaymond. 1984. “Estimating the Demand of Characteristics of Housing.”Review of Economics and Statistics64:394–404.
31.
RosenSherwin. 1974. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.”Journal of Political Economy82:34–55.
32.
TanTony XingMarfoKofiDedrickRobert F.2007. “Special Needs Adoption from China: Exploring Child-level Indicators, Adoption Characteristics, and Correlates of Behavorial Adjustments.”Children and Youth Services Review29:1269–85.
33.
TobinJames. 1958. “Estimation of Relationships for Limited Dependent Variables.”Econometrica26:24–36.
34.
WulczynFred. 2003. “Closing the Gap: Are Changing Exit Patterns Reducing the Time African American Children Spend in Foster Care Relative to Caucasian Children?”Children and Youth Services Review25:431–62.
