Irvine, Calif., Oct. 15, 2024 — A recent study by the University of California, Irvine, reveals that cash transfers to families through a casino-funded program have significantly improved academic performance among American Indian children.
The research, published in Nature Communications, demonstrates how financial support can help break the cycle of socioeconomic disadvantage.
“Our findings show that early economic investments can lead to higher test scores in reading and math, which enhances life outcomes for the next generation,” said Tim Bruckner, the study’s lead author and a professor at UC Irvine’s Joe C. Wen School of Population & Public Health. “This is especially crucial for American Indian communities that have faced systemic educational barriers.”
The research team focused on a casino opened in 1990 on land belonging to a Southeastern American Indian tribe in rural North Carolina. Since 1996, tribe members have received cash transfers from the casino’s profits, aimed at community welfare and economic development. The results indicated that children of mothers who received these funds showed improved test scores in reading and math, with these gains often matching or surpassing other educational interventions in North Carolina.
The study also highlighted intergenerational benefits. Mothers who received cash transfers for a longer duration during childhood saw greater academic improvements in their own children.
Over its nearly 35 years of operation, the casino has provided additional benefits that enhance the overall well-being of both American Indian and non-American Indian residents in the area. Half of the gaming revenues are invested in healthcare centers, schools, behavioral health services, and drug prevention programs. The casino is also the region’s largest employer and helps stimulate local businesses.
“Our research emphasizes the long-term benefits of investing in children to address socioeconomic inequalities,” Bruckner noted. “However, financial aid alone cannot fix the lasting effects of multigenerational discrimination and structural barriers. Gaps in educational achievement between American Indian and non-American Indian students in math and reading remain. We need to explore other factors that might influence these test score improvements, such as health outcomes, parental choices, and community enhancements funded by casino revenues.”
The research team included UC Irvine doctoral student Brenda Bustos and Candice L. Odgers, a professor of psychological science and informatics; along with Duke University’s Kenneth A. Dodge and Jennifer E. Lansford, both distinguished professors of public policy studies; and William E. Copeland, a professor of psychiatry at the University of Vermont.
This research received support from the Eunice Kennedy Shriver National Institute of Child Health and Human Development.
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