Blow et al. (2004) provides a summary of methodological problems and evidence that is given to support their claims. They comment the there is no enough evidence to support that children will have better outcomes as a result of an increase in the incomes of the families. A lot of the evidence is derived Haveman and Wolf (1995) and Mayer (1997). One of the most important findings is that the effect of the current income in the life of a child is very small and the effect of a permanent income is of more concern. This is however not constant as other factors come into play. It is however

not clear on what variables to include or exclude when considering the effect of income on children’s outcomes. The effects of a permanent income mean that he child will have a more stable life as c0mparwd to the one that is always changing. There is likely to be more effects on a child when a low income family experiences an increase in income. It is not possible to determine the independent effects of employment