For Today: Return Reaction Papers Return Project Papers Discuss Stage II Project Assignment Discuss Exam Review Sheet Quiz #9 Income Inequality – Does it Matter? Family Structure and Poverty (Chapter 6 Schiller) The Underclass: Culture and Race (Chapter 7 of Schiller) For Wednesday, 10/10: Read Chapter 8 of Schiller Read Read Chapter 3, “Why Don’t Welfare-Reliant Mothers Go to Work?” No reading quiz For Monday, 10/15: Read Chapter 9 of Schiller Exam Review Discussion Wednesday, 10/17: Exam What do we mean by the term "family structure?" 1) Number of children 2) Number of parents in household/marital status Two parents Married Unmarried Single Parent Never married Married - separated - absent spouse Divorced Widowed How has family size changed over the past three decades in the U.S.? Average number of children in a family has declined. (Overall - downward trend in childbearing) In 1960 1/3 of children grew up with 3 or more siblings (only 15% in 1990) How does family size affect poverty? "Children are a distinct threat to the financial security of a family." - Schiller We know increase in number of children increases likelihood of poverty -more mouths to feed -more constraints for working at a job (child care, etc.) (figure 6.1 in text shows that for both single and two-parent families, poverty rate rises as number of children rises.) If causality goes both ways, are there reasons why poor families might have more children? access to and use of birth control abortion rates unwanted birth rates 17% of nonpoor families report unwanted births 26% of near poor families report unwanted births 42% of poor families report unwanted births Perverse incentives from the welfare system (big brother) How has family structure, other than size, changed? "Single parenthood has transformed the demographic profile of American and feminized poverty." Schiller Increase in % of families with one-parent Table 6.1 from text Living Arrangements of Children Percent Distribution Family Structure 1960 1998 Two-parent 87.5% 68.1% family One-parent family 8.0% 23.3% Mother only 1.1% 4.4% Father only Other Custodian 3.2% 4.2% Why more single-parent families? 1) Divorce rate has doubled since 1960 % of children in divorced homes is up 2) % of births to unmarried women has increased (See next page - chart.) % of children living in different family structures has changed See table 6.2 in text for changes over time. Socially and economically, is there a distinction between being unmarried and divorced? (as a parent) Why has their been an increase in births to unmarried women? Why has Family Structure Changed? Flawed Character Arguments Big Brother -Welfare’s role ("cycle of poverty") -Perverse incentives for couples not to stay together Restricted Opportunity -Diminished economic opportunity for men leading to decline in marriageable men -Adverse economic conditions and financial stress leading to split ups -Increased economic insecurity -Lack of access to birth control What impact has changing family structure had on poverty? Are structural changes in families a cause or effect of poverty? Having one parent in house instead of 2 reduces income by more than ½ Poverty Rate for married couple families (5.8%); single parent (30.4%) 37.1% of families with children in poverty in 2 parent; 58.4% in 1 parent 80.6% of families above poverty in 2 parent; 17.2% in 1 parent Poverty Rates by Family Structure and Race Family Type White Black Hispanic Two Parents 4.3 8.6 19.3 Mother Only 32.9 47.5 52.2 Father Only 14.7 24.6 28.6 Danziger & Gottschalk estimate 1/5 lower poverty if family structure hadn’t changed since ’68; 1/3 lower for African-Americans Intergenerational Consequences of Poverty