Table 1



Economic Status of Grandparent Headed Households


Before and at Time of Acquiring a Co-Resident Grandchild


 


Tammy Wiese, Teresa Cooney, and Deanna L. Sharpe, University
of Missouri, Columbia


 


Abstract


 


The
1993-2001 waves of the Panel Study of Income Dynamics (PSID) were used to
examine change in the economic status of grandparent-headed households before
and at time of acquiring a co-resident grandchild.  A nationally representative longitudinal data
collection, PSID provides unique insight into the economic consequences of
household demographic change. 
Preliminary results indicate that, at the time of transition to a
co-resident grandchild, average labor income for the grandparent headed
household decreases while average transfer income increases.   Average expenditures for childcare and food
increase, while food stamp expenditures increase.  Housing expenditure changes varied with
average rent expenditures decreasing but mortgage payments increasing.


 


 


Preliminary Results


 


Obtaining longitudinal data
on care giving transition can be difficult as families may or may not choose to
participate in data collection over time. 
For this preliminary research, data were obtained for the year prior to
(T-1) and the year of (T) transitioning to a co-resident grandchild.  Demographics of the head of household are
reported in Table 1.  Household characteristics
are given in Table 2.  Change in income
and expenditures over time (adjusted for inflation) are given in Tables 3 and
4, respectively.  Future work will
examine economic transitions by characteristics of head and household and
explore the impact of current tax and transfer policy for grandparents who
experience this type of transition. 


 


Table 1.  Demographics
of Head


 
























Variable

T-1

N (%)

T

N (%)

Employment Status (n=103)

 

 

Working now

56 (54.37)

57 (55.34)

Only temporarily off work

0        (0)

0        (0)

Looking for work, unemployed

6   (5.83)

6   (5.83)

Retired

21 (20.39)

21 (20.39)

Permanently disabled; temporarily disabled

10   (9.71)

9   (8.74)

Keeping house

8   (7.77)

8   (7.77)

Student

1     (.97)

1   (0.97)

Other; “workfare”; in prison or jail

1     (.97)

1   (0.97)

Marital Status (n=145)

 

 

Married

83 (57.24)

73 (50.34)

Never married

13   (8.97)

13   (8.97)

Widowed

20 (13.79)

28 (19.31)

Divorced

16 (11.03)

15 (10.34)

Separated

13   (8.97)

15 (11.03)

Race (n=49)

 

 

White

8 (16.33)

10 (20.41)

Black

38 (77.55)

36 (73.47)

American Indian, Aleut, Eskimo

0        (0)

1   (2.04)

Latino

3   (6.12)

2   (4.08)

Sex (n=145)

 

 



 Table 1 continued






Variable

T-1

N (%)

T

N (%)

Sex (n=145)

 

 

Male

89 (61.38)

76 (52.41)

Female

56 (38.62)

69 (47.59)

 


 


Table 2. Demographic Means – Total Sample


 








 

Variable

T-1

T

Median

Mean

Median

Mean

Age of head (n=145)

52.00

52.89

53.00

53.70

Age of wife (n = 68)

47.00

48.18

48.00

50.53

# in family unit (145)

4

3.64

4

3.70

# of children in family unit (145)

1

1.38

1

1.67

 


 


Table 3.  Income –
Total Sample*


 









 

Variable

T-1

T

%

Change

 

 

Median

( n)

 

 

Mean

(n)

0’s deleted

Mean

(n)

 

 

Median

(n)

 

 

Mean

(n)

0’s deleted

Mean

(n)

 

 

Median

 

 

Mean

0’s

deleted

Mean

Total family income

 

26,845

(107)

 

32,033

(107)

 

32,032

(107)

 

25,866

(107)

 

27,948

(107)

 

27,948

(107)

 

-3.65

 

-12.75

 

-12.75

Transfer income head & wife

0

(107)

2,275

(107)

3,744

(65)

382

(107)

2,570

(107)

4,231

(65)

 

 

12.97

 

13.01

Transfer income other family members

0

(107)

905

(107)

2,429

(42)

0

(107)

1,321

(107)

4,147

(42)

 

0

 

45.97

 

70.73

Labor income of head

10,220

(107)

14,388

(107)

19,738

(78)

7,533

(107)

12,930

(107)

17,737

(78)

-26.29

-10.13

-10.14

Labor income of wife

 

0

(107)

 

5,652

(107)

 

13,441

(45)

 

0

(107)

 

3,848

(107)

 

9,151

(45)

 

 

0

 

 

-31.92

 

 

-31.92

 


 





Table 4.  Expenditures
– Total Sample


 









 

Variable

T-1

T

%

Change

 

 

Median

( n)

 

 

Mean

(n)

0’s deleted

Mean

(n)

 

 

Median

(n)

 

 

Mean

(n)

0’s deleted

Mean

(n)

 

 

Median

 

 

Mean

0’s

deleted

Mean

Child care

0

(123)

77

(123)

307

(31)

0

(123)

219

(123)

868

(31)

 

0

 

   184

 

182.74

Total food

4,560

(105)

5,128

(105)

3,316

(105)

4,440

(105)

5,302

(105)

5,302

(105)

 

-2.63

 

  3.39

 

59.89

Food stamps

0

(121)

495

(121)

1,577

(38)

0

(121)

509

(121)

1,620

(38)

 

0

 

  2.83

 

2.73

 

Rent

 

0

(85)

 

1,165

(85)

 

3,246

(33)

 

0

(85)

 

868

(85)

 

2,434

(33)

 

 

0

 

 

-25.49

 

 

-25.02

Mortgage

0

(124)

1,638

(124)

3,982

(51)

0

(124)

1,867

(124)

4,540

(51)

 

0

 

13.98

 

14.01

 





* Income plus
data not available in 1993 for individuals who became a custodial grandparent
in 1994.