The cost of raising children across evolving family structures: New estimates and policy challenges

The cost of children is a key data relevant to a wide range of policy questions and household decisions. In light of evolving family structures and the growing prevalence of separated parents, this brief examines the cost of children in diverse family settings in European OECD countries. It provides new, country-specific estimates of the costs of children based on household expenditure and self-reported economic well-being data among couples and single parents caring for resident and non-resident children. The brief highlights that it is essential to continue enhancing the collection of detailed and comparable information on family structures, living arrangements, and inter-household transfers involving “non-resident” children in income, living conditions and household budget surveys. This information is crucial for accurately estimating the costs associated with raising children, including those alternating between households and may be classified as “non-resident” members. It also enables a better estimation of how different care arrangements influence financial hardship, particularly among single-parent households.