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)
|
0s deleted
Mean
(n)
|
Median
(n)
|
Mean
(n)
|
0s deleted
Mean
(n)
|
Median
|
Mean
|
0s
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)
|
0s deleted
Mean
(n)
|
Median
(n)
|
Mean
(n)
|
0s deleted
Mean
(n)
|
Median
|
Mean
|
0s
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.