How Parents Have Coped: The Effect of Life Cycle Demographic Decisions on the Economic Status of Pre-School Age Children, 1964-87

Abstract

SINCE THE EARLY 1960S THE DEMOGRAPHIC CIRCUMSTANCES of children under six years old in the United States have changed substantially, with effects on their economic well-being both for better and for worse. Most previous studies of this subject, following Samuel Preston's (1984) lead, have stressed the adverse effect on the poverty rate of children resulting from the breakup of marital and nonmarital unions (Bane, 1986; Dooley, 1989; Duncan et al., 1987; Easterlin, 1987; Espenshade, 1985; Garfinkel and McLanahan, 1986). This article takes a somewhat broader view, complementing and extending previous work. First, it looks at children of all economic statuses, not just those in poverty. Second, in assessing the effect of demographic decisions on children's average economic status, it encompasses a wider range of factors. As potential parents pass from adolescence through the familyforming years, they face decisions about the formation or dissolution of unions, establishment of an independent household, number of children, timing of children, and labor force participation. The concern here is with how this entire set of life cycle demographic decisions in the period 196487 affected the average economic status of pre-school age children. On a priori grounds, the combined effect of these decisions on young children's economic status is uncertain. There is ample documentation of the adverse impact of the growth of single-parent families. Because children in such families are typically worse off than those in two-parent families, a shift from twoto one-parent families would worsen the economic status of children. But other demographic decisions, both of couples and of single