The remarkable thing that happens to poor kids when you give their parents a little money

Twenty years ago, a group of researchers began tracking the personalities of 1,420 low income children in North Carolina. At the time, the goal was simple: to observe the mental conditions of kids living in rural America. But then a serendipitous thing happened.

Four years into The Great Smoky Mountains Study of Youth, the families of roughly a quarter of the children saw a dramatic and unexpected increase in annual income. They were members of the Eastern Band of Cherokee Indians, and a casino had just been built on the reservation. From that point on every tribal citizen earned a share of the profits, meaning about an extra $4,000 a year per capita.

For these families, the extra padding was a blessing, enough to boost household incomes by almost 20 percent on average. But for the fields of psychology, sociology and economics, it has been a gold mine, too. The sudden change in fortunes has offered a rare glimpse into the subtle but important ways in which money can alter a child’s life. The dataset is so rich that researchers continue to study it to this day.

– The Washington Post

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