Single-Parent Families: Are Their Economic Problems Transitory or Persistent?

Abstract

The authors examine living arrangements and economic status of children in a dynamic perspective using data from a longitudinal household survey (the Panel Study of Income Dynamics or PSID) for which annual interviews were conducted with a representative sample of U.S. households between 1968 and 1984. Much of this analysis will focus on a group of 707 children who were born into these households between 1967 and 1969 and for whom detailed demographic and economic information has been gathered over their first 15 years of childhood. Attention is given to time spent in one-parent households and to parental absence and childs economic well-being. In most instances data are provided separately for blacks and It is found that while most of the children who ever live in a single-parent family or below the poverty line do so for a relatively short period racial differences are striking: Both life in a single-parent family and experience with poverty are much more prevalent and persistent for black children than for whites. While the effect of marital status on the economic well-being of mothers and children is shown labor-market events appear to bear more responsibility than do family events for transitions into poverty. (EXCERPT)

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