Analyzing Differences in Child Well-Being Among U.S. States

Abstract

This article develops a comprehensive composite state-level index of child well-being modeled after the Foundation for Child Development’s Child Well-Being Index (CWI) to assess state differences in child well-being among the 50 U.S. states in 2007. The state-level CWIs are composed of 25 state-level indicators clustered into seven different domains or dimensions of child well-being. In addition to examining state rankings and the inter-relationship among domains across states, statistics on 27 demographic, economic, and policy characteristics of the states are analyzed in a regression analysis with respect to their ability to explain state differences in the CWIs. Because of the large number of explanatory variables and the potential redundancy created thereby, a principal components analysis/composite index method is applied. This leads to three composite indices that simplify the regressor space and explain 66.0 % of the variance. A second regression that adds three key policy measures to the three structural indices explains 79.5 % of the variance. Key findings of the study pertaining to how the resources available to children provided by families, communities, and the public sector relate to child well-being are discussed.

Appendix A: Sources and Definitions of Demographic, Economic and Policy Measures

Demographic Measures	Source	Definition/Importance for Children and Families
Non-Hispanic Black Population Under Age 18	U.S. Census Bureau, Population Estimates 2007	Percent of the under 18 population that is non-Hispanic and black.
Hispanic Population Under Age 18	U.S. Census Bureau, Population Estimates 2007	Percent of the under 18 population that is Hispanic.
Minority Population Under Age 18	U.S. Census Bureau, Population Estimates 2007	Percent of the under 18 population that is not non-Hispanic white.
Population Ages 0 to 4	U.S. Census Bureau, Population Estimates 2007	Percent of the under 18 population that is age 0 to 4.
Population Ages 10 to 17	U.S. Census Bureau, Population Estimates 2007	Percent of the under 18 population that is age 10 to 17.
Children with a Foreign-Born Parent	U.S. Census Bureau, American Community Survey 2007	Percent of the under 18 population with at least one foreign-born parent.
Urban population	U.S. Census Bureau, American Community Survey 2007	Percent of total population that live in urban areas.
State Per Capita Income	U.S. Bureau of Economic Analysis 2007	Sum of all personal income received by all persons from all sources divided by state population from U.S. Census Bureau’s Population Estimates.
Gini Coefficient	U.S. Census Bureau 2007	A measure of the inequality of the income distribution. A value of 0 implies total equality, and a value of 1 is considered the maximum inequality.
Household Net Worth	U.S. Census Bureau 2007	Household net worth is the sum of assets of any person age 15 years and older in the household, less any liabilities. Assets included in this measure are interest-earning assets, stocks and mutual fund shares, real estate, own business or profession, mortgages held by sellers, and motor vehicles. Liabilities covered include debts secured by any asset, credit card or store bills, banks loans, and other unsecured debts.
Employment Ratio	U.S. Census Bureau, American Community Survey 2007	Percentage of all working-age persons, 18 to 64, who are employed.
Adults 25+ with a HS diploma	U.S. Census Bureau, American Community Survey 2007	Percentage of persons 25 and older who have a high school diploma or equivalent.
Adults 18 to 64 without Health Insurance	U.S. Census Bureau, Current Population Survey 2007	Percentage of adults 18 to 64 who were not covered by any health insurance in the previous year.
Adults with a Disability	U.S. Census Bureau, American Community Survey 2007	Percentage of adults, 18 and older, who reported at least one type of disability.

Economic Measures	Source	Definition/Importance for Children and Families
State Per Capita Income	U.S. Bureau of Economic Analysis 2007	Sum of all personal income received by all persons from all sources divided by state population from U.S. Census Bureau’s Population Estimates.
Gini Coefficient	U.S. Census Bureau 2007	A measure of the inequality of the income distribution. A value of 0 implies total equality, and a value of 1 is considered the maximum inequality.
Household Net Worth	U.S. Census Bureau 2007	Household net worth is the sum of assets of any person age 15 years and older in the household, less any liabilities. Assets included in this measure are interest-earning assets, stocks and mutual fund shares, real estate, own business or profession, mortgages held by sellers, and motor vehicles. Liabilities covered include debts secured by any asset, credit card or store bills, banks loans, and other unsecured debts.
Employment Ratio	U.S. Census Bureau, American Community Survey 2007	Percentage of all working-age persons, 18 to 64, who are employed.

Policy Measures	Source	Definition/Importance for Children and Families
State and local tax rates	Tax Foundation State-Local Tax burdens, All States, 2007	Total states and local taxes paid by state residents to both their own and other Governments divided by each state’s total income
Income tax threshold for a two parent family of four	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	Higher thresholds at which a family becomes subject to state income taxes reduce the tax burden and ensure that the state’s tax structure encourages and rewards work.
States with personal income tax	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	Does the state have a personal income tax?
States where minimum wage exceeds federal requirements	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	States where minimum wage exceeds the federal requirements can promote economic stability and encourage and reward work.
States with refundable Earned Income Tax Credit	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	The Earned Income Tax Credit (EITC) is considered effective in helping move working families out of poverty. States can supplement the federal EITC by making the state tax credit refundable and increasing tax refunds.
States where part time workers are eligible for unemployment insurance	United States Department of Labor, Comparison of state unemployment laws, 2007	Many states exclude workers who seek part-time employment, often times parents and primarily women. Possible benefits to workers seeking part-time work include full eligibility for unemployment insurance or limited eligibility—possibly covering workers with health conditions or a history of part-time work.
TANF cutoff for countable asset limits	Corporation for Enterprise Development, 2007–2008 Assets and Opportunities Scorecard	Temporary Assistance to Needy Families (TANF) may limit benefits to those with few or no assets, which can discourage families from saving or collecting assets in the interest of receiving benefits. Higher limits on assets can encourage personal savings and asset building allows families to move off of assistance.
Food Stamp participation rate	U.S. Department of Agriculture, State Supplemental Nutrition Assistance Program Participation Rates In 2008.	The participation rate is calculated by dividing the number of people participating in food stamp programs by the number of eligible people. The estimates of eligible individuals are derived from a model that uses data from the U.S. Census Bureau’s Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC), which provides income and program participation information for the previous calendar year, as well as detailed information on program rules from the fiscal year to simulate eligibility for SNAP.
Medicaid child eligibility as a percent of federal poverty level	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	The availability of government health insurance is determined by the income eligibility level and is considered an important part of child development and helping children to stay healthy.
Medicaid working parent eligibility cutoff as a percent of poverty	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	Parental health eligibility is determined by the income level of the family and is an indicator of child’s use of health services. The eligibility for government funded health insurance is determined separately from the child’s eligibility.
States charging a premium for child health coverage programs	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	States that charge a premium or copay for access to children’s health care can ultimately limit access to health care. Copayments apply to non-preventative physician visits, emergency visits, and/or inpatient hospitalizations.
Education spending per 4 year old in pre-kindergarten	Policy Matters: 2008 Data Update, Center for the Study of Social Policy	Education spending is an indicator of access to pre-school and is a comparative measure across states. This is not the same measure as funding per 4 year old enrolled, which can be considered a measure of quality.
Spending per pupil in public elementary and secondary schools	National Center for Education Statistics, Digest of Education Statistics, 2007	This is the total current expenditures for public elementary and secondary education divided by the fall membership as reported in the state finance file. The expenditures for equipment, non-public education, school construction, debt financing and community services are excluded. These data are from the CCD National Public Education Financial Survey.
Access to preschool	National Institute for Early Education Research, State of Preschool Yearbook, 2007	The measures of access for 3 and 4 year-olds were calculated using state data on enrollment and Census population estimates. Criteria considered were total state program enrollment, school districts that offer state program, income requirement, hours of operation, hours of operation, special education enrollment, federally funded Head Start enrollment, and state-funded Head Start enrollment.
Resources for preschool	National Institute for Early Education Research, State of Preschool Yearbook, 2007	All reported spending per child was calculated by dividing the sum of reported local, state, and federal spending by enrollment. Types of spending include: total state pre-K spending, whether local providers match state funding, state Head Start spending, state spending per child enrolled, and all reported spending per child enrolled.
Quality standards for preschool	National Institute for Early Education Research, State of Preschool Yearbook, 2007	Quality standards for preschools were determined from the following indicators: early learning standards set by the state, teachers with at least BA degrees, teacher specialized training, assistant teacher degree, teacher in-service, maximum class size, staff-child ratio, screening/referral and support services for vision, hearing, and health, meals, and monitoring of classes.