Why Are Children Poor?

Data from the 1960, 1970, and 1980 Censuses of Population and the Current Population Surveys of 1980 and 1985 are used to describe and analyze the economic position of children with special emphasis on cross-section differences and variation over time in the incidence of poverty. Between 1959 and 1979 the income available to children tended to follow the same pattern as adult income, but between 1979 and 1984 the trends for children were very unfavorable. Poverty rose, average income fell, and income inequality increased. Contrary to popular belief, the increase in femaleheaded households played only a small part in the growth of poverty among children since 1979. Income available to children fell because households with children are highly dependent on labor income- -which fell for all age groups. The elderly (65+), who derive 75 percent of their income from nonlabor sources (e.g., social security, private pensions, interest), were the only age group to experience gains in real per capita income during 1979-84. The conclusions about trends in the money income available to children and adults are relatively unchanged when estimates of the value of nonmarket production and in-kind government social welfare programs are added to money income.