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No abstract

This study investigates whether generous family policies at the transition to parenthood reduce single and partnered mothers’ economic disadvantages later in the life course. Previous research usually focused on the immediate effects of family policies and disregards potential longer-term effects. In this study, we suggest taking a life-course perspective to study the relationships between family policy and mothers’ poverty risks. We empirically investigate how investment in child benefits, childcare services and parental leave measures at the transition to parenthood are associated with poverty outcomes at later life stages and whether these associations hold over time. We draw on pooled EU-SILC data, and an original policy dataset based on OECD expenditure data for child benefits, childcare and parental leave from 1994 to 2015. We find that mothers’ observed increase in poverty over time is slower in countries with high levels of spending for childcare at the transition to parenthood than in lower spending countries. The gap between partnered and single mothers was also diminishing in contexts of high childcare expenditure. For the other two policies, we did not find these links. These results do lend support to the claim that childcare is a prime example of a social investment policy with returns later in the life course and represents a life-course policy that seems to be able to disrupt economic path dependencies. The results for the other two policies suggest, however, a limited potential of family policy spending at transition to parenthood to reduce the poverty gap between partnered and single mothers over the course of life.

Income inequality has grown in many countries over the past decades. Single country studies have investigated how trends in family demography, such as rising female employment, assortative mating and single parenthood, have affected this development. But the combined effects have not been studied sufficiently, much less in a comparative perspective. We apply decomposition and counterfactual analyses to Luxembourg Income Study data from the 1990s and 2000s for West Germany and the USA. We counterfactually analyse how changes in the distribution of men’s and women’s education, employment and children across households between the 1990s and 2000s affected overall inequality (Theil index). We find that changes in family demography between the 1990s and the 2000s explain inequality growth in West Germany but not in the USA, where the effects of gendered changes in education and employment offset each other. In West Germany, changes in the distribution of household types, and particularly changes in men’s employment and education, contributed to increases in income inequality. The country differences in the relationship between changes in family demography and inequality growth reflect how the decline in men’s and the growth in women’s employment played out differently in the weakening male breadwinner context in West Germany and in the universal breadwinner context in the USA.