Economics of Adoption

Abstract

This chapter provides an overview of the economic theory of child adoption and empirical research on adoption in the United States. Using a model of supply and demand, the chapter begins with a description of a market framework for adoption services, which allows for understanding the role of economic incentives, policy, and “consumer” preferences in adoption decisions. The chapter then discusses the theory and empirical evidence on whether and how supply-side and demand-side factors influence adoptions, separately considering the markets for private domestic adoptions, international adoptions, and public foster care adoptions. Differences in supply and demand across the different markets, and shifts in supply and demand over time, can explain trends in the numbers of adoptions, differences in the cost of adoption, and differences in the characteristics of adoptive parents and adopted children across adoption markets.

Publisher

Edward Elgar Publishing

Publication Date

4-25-2023

Department

Economics

Document Type

Book Chapter

DOI

https://dx.doi.org/10.4337/9781800883260.00009

Notes

Chapter 4

Keywords

Adoption, Foster care, Child welfare, Tax incentives, Subsidies, Policy

ISBN

9781800883260

Language

English

Format

text

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