Research That Matters (January 17 - 20, 2008)

Background: The United States has greater income inequality and higher child poverty than any other industrialized, wealthy nation, which greatly impacts opportunities for American children. Given that social and economic institutions are built upon the presumption of the breadwinner-homemaker family structure as ideal, family formation and living arrangements also appear to create disadvantages and high poverty risk for some children. Government income redistribution policies have varied success in reducing child poverty, especially among children living in vulnerable family structures. In examining the differential reduction of child poverty in various family structures, cross-national comparisons may provide useful information for improving the effectiveness of antipoverty policies. Methods: This study used data from Wave V of the Luxembourg Income Study, a harmonized dataset of household income surveys from 30 wealthy, industrialized countries. Using nationally representative sample from Canada, the United Kingdom, and the United States, income redistribution and relative child poverty in various family structures were comparatively examined. Single mother, single father, two-parent, single grandmother, single grandfather, and two-parent grandparent families with children under the age of 18 were analyzed. The percentage of children living in households with income at or below 50% of the median household income in each country is presented for market income, income after universal transfers, income after taxes, income after means-tested transfers, and income after near-cash benefits. The proportion of child poverty reduced between each group of income redistribution policies was also examined. Structural functional theory was used as a guiding conceptual framework. Results: Results indicate that income is differentially redistributed in various family structures in all three countries, often with smaller child poverty reductions among more vulnerable family structures. Single mother families have the highest child poverty rates at each phase of income redistribution, while two-parent families have the lowest rates. Children living in grandparent-headed families experience the largest reductions in poverty through income redistribution. Children living in households with young children have higher poverty rates at each phase of income redistribution than children living in households with no young children, yet they experience smaller reductions in poverty across all three countries. The United States has the highest child poverty rates in all examined structures at each phase of income redistribution, while the United Kingdom reduces child poverty by the largest proportion. Implications: While income is redistributed differentially by family structure, the utilization of structural characteristics for policy development is challenged. Child poverty policies in the United States, which emphasize altering demographic characteristics and provide incomprehensive and ineffective work-based solutions, are discussed in comparison with the United Kingdom's successful poverty reduction efforts. Policy implications and social work advocacy opportunities for improving child poverty reduction efforts in the United States through labor market regulation, caregiving relief, and caregiving support programs for families are also discussed.