Within-child associations between family income and externalizing and internalizing problems

Within-child associations between family income and child externalizing and internalizing problems were examined using longitudinal data from the NICHD Study of Early Child Care and Youth Development (2004a, 2004b; N=1,132). Variations in income effects were estimated as a function of whether families were poor, whether mothers were partnered, and the number of hours mothers and their partners were employed. On average, children had fewer externalizing problems during times when their families' incomes were relatively high than during times when their families' incomes were relatively low; the estimated benefits of increased income were greatest for children who were chronically poor. For both externalizing and internalizing problems, income was most strongly associated with problems when chronically poor children's mothers were partnered and employed.