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Investments in Children with Disabilities and Behavioral Issues

Paper Session

Sunday, Jan. 6, 2019 8:00 AM - 10:00 AM

Atlanta Marriott Marquis, International 5
Hosted By: American Economic Association
  • Chair: Eric Hanushek, Stanford University

The Effect of an Autism Insurance Mandate on the Education of Children with ASD

Riley K. Acton
,
Michigan State University
Scott Imberman
,
Michigan State University
Michael F. Lovenheim
,
Cornell University

Abstract

Autism Spectrum Disorder (ASD) is one of the fastest growing developmental disabilities in the US. Recently, a number of states have sought to address spiraling costs of ASD treatment by introducing insurance mandates for Applied Behavioral Analysis (ABA) therapies that have been shown to generate substantial improvement in children's behavior. These mandates have the potential to help schools by shifting cost burdens, increasing early intervention and outside therapy that could improve student performance, and helping schools target and coordinate services.

We assess the effects of Michigan’s coverage mandate on autism identification, test scores, grade retention, test accommodations, support services, and educational settings using individual student level data from the Michigan Department of Education. Michigan adopted its autism insurance mandate in 2012 requiring coverage for ASD by private state regulated insurers up through age 18. The law also required Medicaid and CHIP to provide coverage that ended upon reaching age 6 considerably weakening the benefit. Since we cannot directly observe insurance coverage, we proxy using economic disadvantage. Hence we estimate a dosage intention-to-treat where non-disadvantaged students are more likely to be privately insured and Medicaid/CHIP provides an inferior benefit. Census data for Michigan suggests that only 31% of children income eligible for reduced-price lunch are privately insured as opposed to 89% of ineligible children.

Using a difference-in-differences strategy we find no effect on ASD incidence. We then estimate triple difference models using non-ASD special education students as a comparison group and find evidence of service reductions and movement to less restrictive environments. Finally, triple difference models suggest a negative impact on achievement and higher retention. We will buttress with the data on the number of Board Certified Behavior Analysists (BCBAs) close to students’ schools. BCBAs are the primary providers of ABA therapies, and insurance typically requires BCBA supervision.

Does Special Education Improve Outcomes for Students with Learning Disabilities? Evidence from New York City

Amy Ellen Schwartz
,
Syracuse University
Bryant Hopkins
,
New York University
Leanna Stiefel
,
New York University
Michael Gottfried
,
University of California-Santa Barbara

Abstract

Due to the inherent challenges associated with educating students with disabilities (SWDs), financial obligations for school districts educating large numbers of SWDs can be burdensome. In New York City, the largest school district in the country, SWDs make up 20% of the student population and students with a learning disability (LDs) represent approximately 45% of the special education population. Like many other special populations, the high cost of providing resources fuels the need to evaluate their effectiveness.

We use longitudinal, student-level administrative data from the NYC Department of Education, which includes measures of race/ethnicity, gender, foreign-born status, limited English proficiency (LEP), free/reduced price lunch (FRPL) eligibility, grade level, disability status, test scores for the NYS Mathematics and ELA examinations, annual attendance, and school ID. The rich data allow for the comparison of academic performance before and after receiving services for students in grades three through eight – grades when the NYS assessments in mathematics and ELA are offered. With the large population of LDs in NYC schools, and the variation in the timing of receiving services, we estimate intent-to-treat effects of special education services.

We analyze academic outcomes of LDs receiving special education services linking test scores (or attendance rates) with an LD indicator, progressively introducing demographic characteristics, school effects, and student effects. Regardless of the specification, we find that LDs score higher on the NYS Mathematics and ELA examinations in all years following initial receipt of services. These results, however, vary depending on a student’s grade of classification, with larger effects for students classified in earlier grades. We find no statistically significant impact on annual attendance rates. We further explore subgroup effects (gender, race/ethnicity, poverty status, and receipt of LEP services) and possible mechanisms such as the receipt of inclusive versus non-inclusive services, school mobility, and school characteristics.

Sibling Spillovers

Sandra E. Black
,
University of Texas-Austin
Sanni Breining
,
Aarhus University
Krzysztof Karbownik
,
Northwestern University
David Figlio
,
Northwestern University
Jonathan Guryan
,
Northwestern University

Abstract

It is notoriously difficult to identify peer effects within the family because of the common shocks and reflection problems. We make use of a novel identification strategy and unique data in order to gain some purchase on this problem. We employ data from the universe of children born in Florida between 1994 and 2002 and in Denmark between 1990 and 2001, which we match to school and medical records. To address the identification problem, we examine the effects of having a sibling with a disability. Utilizing three-plus-child families, we employ a differences-in-differences research design which makes use of the fact that birth order influences the amount of time that a child spends in early childhood with their siblings, disabled or not. We observe consistent evidence in both locations that the second child in a family is differentially affected when the third child is disabled. These results are concentrated in cases in which the third child’s disability is observed early – and therefore, presumably, more likely to affect older siblings in early childhood. Furthermore, the results are more pronounced in the case of physical disabilities – which are likely to be more visible early – rather than cognitive or behavioral disabilities – which are less likely to be manifested and diagnosed early. Analyses of the mechanisms by which sibling spillovers operate suggest that in addition to any direct effect siblings have on each other, the presence of a disabled child in a family appears to affect his or her siblings in part by changing parental allocations of time and financial resources away from the non-disabled children. The results are robust to variety of specification checks and pass multiple falsification analyses.

Maternal Education, Parental Investment, and Non-Cognitive Characteristics in Rural China

Elaine Liu
,
University of Houston
Jessica Leight
,
American University

Abstract

The importance of non-cognitive skills in determining long-term human capital and labor market outcomes is widely acknowledged, but relatively little is known about how educational investments by parents may respond to children's non-cognitive characteristics. This paper evaluates the parental response to non-cognitive variation across siblings in rural Gansu province, China, employing a household fixed effects specification; the non-cognitive measures of interest are defined as the inverse of both externalizing challenges (behavioral problems and aggression) and internalizing challenges (anxiety and withdrawal). The results suggest that there is significant heterogeneity with respect to maternal education. More educated mothers appear to compensate for differences between their children, investing more in a child who exhibits greater non-cognitive deficits, while less educated mothers reinforce these differences. Most importantly, there is evidence that these compensatory investments are associated with the narrowing of non-cognitive deficits over time for children of more educated mothers, while there is no comparable pattern in households with less educated mothers.
Discussant(s)
Diane Whitmore Schanzenbach
,
Northwestern University
Michael F. Lovenheim
,
Cornell University
JEL Classifications
  • I2 - Education and Research Institutions
  • I1 - Health