Bridging Disciplinary Boundaries (January 11 - 14, 2007)

Families caring for children who have disabilities or chronic illnesses are at increased risk for economic hardship. This research adds to previous studies by examining work hours, wages, income, wealth, and the program participation of these families. This study used a special Supplement to the census known as the Survey of Income and Program Participation (SIPP) to investigate the impact of a child's disability on parents' labor force participation. This effect was examined separately by family type. The importance of the child's characteristics, such as age, and type of disability was considered. Parent characteristics (age, education level, race, their own disability that limits their ability to work, and work tenure), were also examined, as were family level characteristics, such as the number of children. The resources of the family were also examined: the availability of a relative who provides care, and the wealth of the family. Because significant changes in eligibility for income assistance from Supplementary Security Income (SSI), Medicaid, and Temporary Assistance to Needy Families (TANF) programs were made over the periods studied, participation rates in these programs were examined. State unemployment and poverty rates were included as controls in the analysis.

Methods

Two types of data were used to answer the research questions posed in this study. First, I used multiple panels from the SIPP with any information on disability combined (1985 through 1993 and 1996, 2001, 2004 and 2006). Second, I used state level information on poverty rates and children's participation in SSI and AFDC or TANF for these years from the U.S. Bureau of Labor Statistics, the U.S. Census of Population, and the U.S. Department of Health and Human Services. The state level data was merged to the individual level data for each person included in the sample.

Results

The results suggest differences among parents and households who care for children with disabilities or chronic illnesses. Single and married mothers decrease their hours when they have a child with a disability or a chronic illness. Married fathers increase their hours in paid employment. Single and married mothers caring for children who have disabilities have greatest variability in paid employment hours. Overall, single mothers reduced their paid employment hours the most when caring for a child with a disability, compared to married mothers and married fathers. These parents are more likely to participate in welfare programs.

Implications

The results of this study have important implications for the formulation of public policies regarding families and children. For example, the finding that caring for a child with a disability or chronic condition has an impact on the household's labor supply equal to that of caring for two children without such impairments suggests that perhaps the number of child exemptions families were allowed by the federal tax system should be adjusted to reflect the health status of children. The finding that the impact on labor supply does not vary significantly with the type of disability is an important consideration for states that experiment with exemption criteria for TANF.