The Effect of Family Foster Care vs. Residential Group Care on Educational Attainment

This study investigates the effect of foster care relative to residential group care on enrollment in upper secondary education among Danish children in out-of-home care who were placed out of home at the age six to 14 years (n = 4530). We address the proposition that children placed in family foster care generally have less severe emotional and/or behavioral problems than children placed in residential group care by utilizing a variation in the municipalities’ relative use of foster care among all children placed in out-of-home care. We find evidence that children living in municipalities with a high inclination to use foster care will be more likely to enroll in upper secondary education (p = 0.004). When splitting the sample by gender, we see that the effects are significant only among girls. When looking at potential mechanisms, we find that children in foster care are more likely to attend the school-leaving exams after lower secondary school, while we find no effect on the average standardized test score in the school-leaving exams. As with the main results, these findings apply to the girls only.