Family Size and Economic Welfare

Abstract

Using data from the 1972-1973 Consumer Expenditure Survey, this article examines the effect of variations in family size on such measures of family economic well-being as levels and patterns of spending, earnings and employment, public assistance and the quantity and quality of housing. In general, although overall income rises somewhat with family size, an increase in the number of children appears to reduce the family's standard of living, especially in young families with small children. Current consumption increases as the number of children increases: families with 4 or more children in which the household head is under the age of 35 and has had more than 12 years of education tend to spend 40% more than childless couples of similar age and educational level. Despite the increased spending, per capita consumption falls for all age and education categories. Larger families devote more of their income to necessities and less to luxuries. Among young couples in which the household head has had 9 to 12 years of education, the proportion of income used to buy food rises from 15% if there are no children present to 25% if there are 4 or more. The proportion of food expenditures devoted to meals eaten out also falls steadily as the number of children rises. Although husband's earnings rise with increase in family size, there is a pronounced decline in wife's earnings, particularly in young families that have children under the age of 4. Overall, as the number of children grows, families spend a larger share of their income on current consumption, and per capita income declines. The % of families receiving welfare or food stamps tends to go up as the number of children increases, particularly among younger couples with less education. When the quantity and quality of housing are examined, the average number of rooms in the family dwelling is found to increase with family size.

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