Abstract
This paper investigates the impact of housing costs on a single mother's living arrangement decision, whether to head her own household or live in the household of other adults. The empirical analysis is conducted using individual-level data from the 1986 Current Population Survey and MSA-level housing cost data based on HUD's Fair Market Rents. Consistent with a priori expectations, the major finding is that increased housing costs significantly reduce a single mother's probability of household headship. This result is especially pronounced for single mothers under age 36.
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