The Dynamics of U.S. Household Economic Circumstances Around a Birth
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The Dynamics of U.S. Household Economic Circumstances Around a Birth Alexandra B. Stanczyk 1 # Population Association of America 2020
Abstract With the arrival of an infant, many households face increased demands on resources, changes in the composition of income, and a potentially heightened risk of income inadequacy. Changing household economic circumstances around a birth have implications for child and family well-being, women’s economic security, and public program design, yet have received little research attention in the United States. Using data from the Survey of Income and Program Participation, this study provides new descriptive evidence of month-to-month changes in household income adequacy and the composition of household income in the year before and after a birth. Results show evidence of significant declines in household income adequacy in the months around a birth, particularly for single mothers who live without other adults. Income from public benefit programs buffers but does not eliminate declines in income adequacy. Results have implications for policies targeted at this period, including public benefit and parental leave programs. Keywords Household income adequacy . Poverty . Economic security . Birth . Infant
Introduction Income inadequacy—a mismatch between available economic resources and economic needs—is common in the time around a birth. Poverty rates are particularly high among households with very young children (Paschall and Bartlett 2019). Declining household income adequacy in the time around a birth is likely for at least two reasons. First, pregnancy and the arrival of an infant increase demands on household resources for expenses such as healthcare, childcare, clothing, and other supplies for the baby Electronic supplementary material The online version of this article (https://doi.org/10.1007/s13524-02000897-1) contains supplementary material, which is available to authorized users.
* Alexandra B. Stanczyk AStanczyk@mathematica–mpr.com
1
Mathematica, 1100 First Street, NE, 12th Floor, Washington, DC 20002, USA
A.B. Stanczyk
(Brandrup and Mance 2011). Second, the period around a birth is a time when mothers’ earnings tend to drop; almost all U.S. mothers take at least some time off work in the months leading up to and following birth (Laughlin 2011), and access to paid maternity leave is rare in this country (Winston 2014). Although these two issues affect households broadly, declines in income adequacy around the arrival of a new child may be particularly large for economically disadvantaged households. Mothers with lower educational attainment may experience larger earnings declines around a birth as they face especially limited access to paid or job-protected parental leave (Winston 2014) and are more likely to quit a job or be fired around a birth (Laughlin 2011). Single mothers—particularly those who live without a partner or other adults—may also face especially large reductions in income adequacy around a birth because they lack other earners in their household
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