Parentsâ Work and Family Economic Well-Being (CRS Report for Congress)
Premium Purchase PDF for $24.95 (56 pages)
add to cart or
subscribe for unlimited access
Pro Premium subscribers have free access to our full library of CRS reports.
Subscribe today, or
request a demo to learn more.
| Release Date |
Aug. 16, 2006 |
| Report Number |
RL33615 |
| Report Type |
Report |
| Authors |
Thomas Gabe and Gene Falk, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
Family and work structure most Americans' lives. Work provides the principal means by which most families support themselves, and public policies directed at low-income families with children have generally attempted to encourage and support work. Family structure also has been a focus of public policy because an increasing number of children live with a single parent, and poverty rates for such children are much higher than for those in married-couple families. Families with children, regardless of marital status, are at greater risk of poverty, with child poverty rates higher than those for either nonaged or aged adults.
Based on nuclear family income in 2004, 17.1% of families with children had total incomes below the poverty line; 21.5% had incomes of less than 125% of the poverty line (poor or near-poor); and 34% had incomes of less than 200% of poverty (low-income). Most low-income families had a parent who worked during the year.
Many parents work at jobs that produce low incomes for their families. In 2004, 13% of parents worked at a wage rate that would have produced below-poverty income for a family of three, and 45% of parents worked at a wage rate that would have produced incomes below 200% of the poverty level, even assuming full-year, full-time workâa level designated as low-income in this report. Thus, families with children headed by a single parentâwith only one potential earnerâare more likely to be poor than those headed by a married couple. However, married couples with children and one working parent sometimes struggle to attain even a modest income above 200% of poverty; it often takes both parents working for a family to exceed low-income levels. Moreover, for many families, if one parent's earnings are lost, the economic status of many married-couple families would suffer.
Parents' characteristics (e.g., education and work experience) and the occupations in which they are employed affect wage rates, and therefore the possibility that a family is poor or low-income. Those with lower levels of educational attainment are more likely to earn low wages and be in low-income families. We estimate that 17% of working parents with just a high school diploma earn wages that are too low to support a family of three at the poverty lineâassuming full-time, full-year workâand 60% would be unable to support such a family at twice that level. Among working parents with a bachelor's degree, only about 6% earn wages too low to support a family of three at the poverty line, but 24% lack the earnings capacity to support such a family at twice the poverty line. Additionally, younger parents typically earn less than older parents, who have had more time to accumulate work experience. This puts the families of young parents, who tend to have young children, particularly at risk for poverty and low income.
Annual earnings and economic status also depend on number of hours worked per week and the number of weeks worked during the year. In married-couple families, strong attachment to the workforce of both parents is associated with higher income levels. However, among poor married-couple families, only half of all poor families had one earner working full-time all year. This report will not be updated.
