Seminario CEA-MIPP - Miercoles 24/09/2025, 12:30 HRS - Sala de Consejo, piso 4, Beauchef 851 - "A Dynamic Search and Matching Model of Foster Care: Theory and Evidence" - Diana McDonald (Banco de México)

Tema: «A Dynamic Search and Matching Model of Foster Care: Theory and Evidence«

Presenta: Diana McDonald (Banco de México)

This paper examines the two-sided dynamic matching problem in the US foster care system, where foster parents and children form reversible matches that may separate, persist, or transition to adoption. We first present new empirical facts on match transitions using administrative data. We then develop a two-sided search and matching model to rationalize these facts and generate predictions. Our findings show that a financial penalty on adoption exacerbates the intrinsic disadvantage faced by children with greater care needs and discourages high-quality matches from transitioning to adoption, highlighting important policy implications for improving permanency outcomes in foster care.

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