Why Do U.S. Parents Prefer Private to Foster Care Adoptions? The Role of Adoption Subsidies, Gender, Race, and Special Needs

26 Pages Posted: 6 Oct 2020

See all articles by Channary Khun

Channary Khun

affiliation not provided to SSRN

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics

Sokchea Lim

John Carroll University

Date Written: October 1, 2020

Abstract

We analyze the demand behavior of adoptive parents in the U.S.A. For the theory, we apply vertical product differentiation to characterize the demand for domestic private, foster care and international adoptions. Then, we use the 2007 U.S. National Survey of Adoptive Parents and apply the control‐function approach to a mixed logit model. We find interesting insights into the relationship between adoption choices and an adoptive parent's preferences over gender, race, and special needs. The government needs to pay an additional $735 ($506) a month to make a parent feel indifferent between international (domestic private) and foster care adoptions. JEL

Suggested Citation

Khun, Channary and Lahiri, Sajal and Lim, Sokchea, Why Do U.S. Parents Prefer Private to Foster Care Adoptions? The Role of Adoption Subsidies, Gender, Race, and Special Needs (October 1, 2020). Economic Inquiry, Vol. 58, Issue 4, pp. 1757-1782, 2020, Available at SSRN: https://ssrn.com/abstract=3704799 or http://dx.doi.org/10.1111/ecin.12904

Channary Khun (Contact Author)

affiliation not provided to SSRN

No Address Available

Sajal Lahiri

Southern Illinois University Carbondale - Department of Economics ( email )

MC 415
1000 Faner Drive
Carbondale, IL 62901
United States

Sokchea Lim

John Carroll University ( email )

1 John Carroll BLVD
University Heights, OH 44118
United States

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