Impaired Cognitive and Behavioral Functioning in Childhood and Economic Outcomes in Adulthood

Developmental disabilities are prevalent among U.S. children, child disability rates have been increasing, and the increases have been driven by cognitive and behavioral disorders. This study estimates the effects of low cognitive test scores and high behavior problem scores in childhood on educational attainment, employment, wages, and access to transportation and credit in adulthood. We assess cognitive and behavior scores at multiple time points during childhood and estimate cross-household and household fixed-effects models. We find that individuals with low cognitive scores in childhood are 10% less likely to graduate from high school, 23% less likely to be employed, 31% less likely to own a motor vehicle, and 18% less likely to have a credit card, and they have 51% lower earnings compared with individuals with higher cognitive scores. We also find that individuals with high behavior problem scores in childhood are 7% less likely to graduate from high school, 11% less likely to be employed, and 13% less likely to own a motor vehicle, and they have 14% lower earnings compared with those with lower behavior problem scores. The findings have important implications for well-being over the life course for a nontrivial share of the U.S. population as well as their families and communities.