Downward spiral: The impact of out-of-home placement on paternal welfare dependency

In this article, we test how out-of-home placement affects men's labor market attachment, and in so doing we provide a novel parallel to existing research on how fatherhood affects men, which focuses almost exclusively on a child's arrival. Using population panel data from Denmark that include all first time fathers whose children were placed in out-of-home care from 1995 to 2005, we find that having a child placed in care is associated with up to a 4 percentage point increase in welfare dependency. Having a child placed in out-of-home care appear to aggravate conditions that likely necessitated the out-of-home placement to begin with, thereby likely necessitating longer duration of out-of-home placements. Thus, out-of-home placements have substantial secondary costs for parents and society.