Methods: The study used the annual data from the Panel Study of Income Dynamics (PSID) and data from the 1997 and 2002 Child Development Supplement to the PSID. A propensity score matching method was employed to reduce selection bias in demographic backgrounds between low income families (welfare recipients) and high income families (non welfare recipients). The sample for this study comprised 1026 children who resided in 546 families. Structural equation models (SEM) were tested to combine complex path models with latent variables over time. Family economic status was measured by family income, welfare recipiency and parents' work status. Family functioning factor included family conflict, sibling relationships, and psychological distress. Behavior Problem Index was examined to measure children's behavior problems.
Results: With the combined dataset that include both welfare use children and non welfare use children, higher family income was related to a more positive family functioning for child, which then had a direct negative effect on child's behavior problems. In the simultaneous SEM analyses of multiple groups, however, the specifics of those indirect relations differed by race and gender between welfare use group and no welfare use group. The mediating effect of family functioning for white girls in high income families was obviously significant, whereas black boys' behavior problems in low income families were not significantly affected by family functioning. Moreover, different groups had different trajectories. Black boys and girls in low income families had more serious behavior problems in 2002, and the mediating effect of family functioning was weaker or disappeared, compared to the results with 1997 data, while there was little change in behavior problems of white girls in high income families.
Conclusions and Implications: This study suggested that a more complex model including school and neighborhood effects as well as family functioning is needed in order to better understand different groups' behavior problems. In terms of social work practice, it is important to offer a package of services to children and families that includes not only cash assistance and earnings supplements, but also various in-kind services such as home visiting programs and high quality center-based programs.