Changes in Family Structure and Child Well-Being: Evidence from the 2002 National Survey of America's Families

Changes in Family Structure and Child Well-Being: Evidence from the 2002 National Survey of America’s Families Gregory Acs and Sandi Nelson The Urban Institute 2100 M Street NW Washington, DC 20037 August 15, 2003 Funding for this work comes from the Urban Institute’s Assessing the New Federalism (ANF) project. The ANF project is currently supported by The Annie E. Casey Foundation, The Robert Wood Johnson Foundation, the W.K. Kellogg Foundation, The John D. and Catherine T. MacArthur Foundation, The David and Lucile Packard Foundation, and The Ford Foundation. The authors would like to thank Elaine Sorensen for her thoughtful comments and suggestions. All errors are the responsibility of the authors. The views expressed in this paper do not necessarily reflect those of the Urban Institute or its sponsors. Changes in Family Structure and Child Well-Being: Evidence from the 2002 National Survey of America’s Families During the late 1990s, the share of children living in single-mother families declined significantly (Acs and Nelson 2001; Cherlin and Fomby 2002; Dupree and Primus 2001). Rather than a concomitant rise in the share of children living with married parents however, the data show an increase in cohabitation (Acs and Nelson 2001). This is a source of concern for policymakers and analysts because previous research demonstrates that living with cohabitors is not as beneficial to children as living with married parents and, in some cases, no better than living with a single parent (Acs and Nelson 2002; Nelson, Clark, and Acs 2001; Manning and Lichter 1996). This paper examines whether these trends in living arrangements from the late 1990s continued into the new decade using data from the 2002 round of the National Survey of America’s Families (NSAF).1 Further, it investigates how the well-being of children in different living arrangements has evolved. Special focus is given to young children and children in low-income families. Our major findings include: • Between 1997 and 2002 the share of children living in single-mother families declined significantly while the share living in cohabiting families increased. These changes occurred during the early years of this period. • Among young children and lower-income children, the shifts away from living with a single mother are offset by both a rise in living with married biological/adoptive parents as well as with unmarried cohabiting parents. 1 The NSAF is nationally representative of the civilian, noninstitutionalized population under age 65, with data on over 44,000 households. For more information on the NSAF, see Dean Brick, et al. (1999). 3• In 2002, children living with married parents (either married biological/adoptive parents or married stepparents) experience less material hardship than children living with single mothers, cohabiting parents, or cohabiting stepparents. In contrast, school-age children and teens living with their own two parents (whether married or not) are less likely to exhibit behavioral problems than children living with single mothers, married stepparents, and unmarried stepparents. • Over the 1997 to 2002 period, children in single-mother families enjoyed larger improvements in material well-being than children in other arrangements. This is likely owing to increase in the work effort of single mothers. Background, Data, and Methods There are many possible factors underlying recent trends in children’s living arrangements. Indeed, social norms and customs, economic conditions, and public policy all affect living arrangement decisions in complex and interrelated ways. For example, over the last few decades, cohabitation has become more accepted in the U.S., and this evolving attitude surely plays some role in the rise in cohabitation. Similarly, the strengthening economy of the late 1990s afforded more young unwed parents the opportunity to find work and earn enough to set up a home together rather than living separately, with the mother and child relying on welfare for support. And as single mothers increased their work effort, their child care needs also increased which may have resulted in more single mothers living in shared arrangements. Further, the increase in housing costs that has accompanied the economic expansion of the last half of the decade 4may have also induced formerly independent living single mothers to share living arrangements.2 And, of course, changes in public policy, like the Earned Income Tax Credit and 1996’s federal welfare reform,3 also may affect the decisions parents make about their children’s living arrangements. Policies that make it harder to qualify for and receive benefits make welfare less attractive and may discourage the formation and maintenance of independent single-mother families. These policies include short time limits, stringent work requirements, tough sanction policies, and famil