Family Economics Review [1992, Volume 5, Number 2]

              IF IAIMI I ILIYI
U.S. DEPOSITORY
IE c 0 N 0 M I c s I PROPERTY OF THE LIBRARY
11 II ll II II II AUG 101992
Editor
Joan C. Courtless
Editorial Assistant
Jane W. Fleming
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1992 Vol. 5 No.2
Feature Articles •
University of North Carolina
at Greensboro
2 Families With High Housing Expenditures:
12
19
A Comparison of Homeowners and Renters
Mary Ann Noecker Guadagno
Payments of Child Support and Alimony
Walter Ellis and Mark Lino
Trends in Transportation
· it Building Use O~l
Research Summaries • 28 Child-Care Arrangements and Costs
30 Child-Care Problems: An Obstacle to Work
32 Per Capita Food Spending in Urban Households
33 Food Spending
Regular Items • 34 Charts From Federal Data Sources
36 Recent Legislation Affecting Families
37 Current Regional Research Project
38 Data Sources
39 Cost of Food at Home
41 Consumer Prices
2
Feature Articles •
Families With High Housing
Expenditures: A Comparison of
Homeowners and Renters
By Mary Ann Noecker Guadagno
Consumer Economist
Family Economics Research Group
Families with high housing expenditures may be experiencing, or heading
toward, financial difficulty. This descriptive study examines select demo­graphic
characteristics, housing characteristics, and expenditures of
homeowners and renters with high housing expenses. Data from the 1989
Consumer Expenditure Survey show that about 8 percent of nonpoor home­owners
and 21 percent of nonpoor renters have average housing expenditures
exceeding 28 percent of their monthly before-tax family income. Those most
likely to overspend for housing include low- and lower middle-income families,
renters, single persons without children, female single-parent homeowners,
minorities, and those who are retired and unemployed. Homeowners with
high housing expenses spend 41 percent of their before-tax income on
monthly shelter payments and spend nearly 3 times as much for shelter as
all homeowners. Corresponding renters spend 40 percent of their before-tax
income on rent and spend 42 percent more on shelter than all renters.
Compared with homeowners in the population, those with high housing
expenses tend to live in more expensive, mortgaged, larger (seven rooms),
multiunit structures in the urban West. Compared with all renters, those
with high housing expenses pay an average of $164 more each month for
the same number of rooms (four) and are more likely to live in multiunit
apartments in the urban West or Northeast. When housing expenses are
high, families may spend less on transportation and retirement-related
expenses.
I though most American
families own their own
home, the home ownership
rate declined during the last
decade, from 65.6 percent in 1980 to
63.9 percent in 1989 (4,11). 1 Recent
estimates by the Bureau of the Census
suggest that 57 percent of all families,
including current homeowners, could
not afford to buy a median-priced home
in 1988, in the region where they
1In 1989,59.8 million households were home­owners,
31.9 million households rented, and 1.6
million households had no-cash rent arrangements
(15).
lived (6). In that same year, a study
of regional housing affordability by
Barner, Laquatra, and Ponessa (3)
showed that housing costs were consid­erably
higher in the Northeast than in
the rest of the country. Not being able
to afford monthly mortgage payments,
not having enough cash for the down­payment
or closing costs, and having
too much debt are associated with the
affordability decline.
Family Economics Review
Of families who owned homes in 1989,
6 million were house-poor, that is,
housing costs2 exceeded 28 percent of
monthly family income, a benchmark of
financial burden according to mortgage
lenders (8). Homeowners in the North­east
and West, recent home buyers, and
low-income homeowners were most
likely to be house-poor.
Because of declining home ownership
rates, affordability issues, and the
importance of housing in family budgets,
families and housing professionals alike
are concerned about the high costs of
housing (13).
Housing Expense Guidelines
How much should families spend for
housing? The banking and housing
industries provide individuals and
families with guidelines for determining
how much they can afford for housing.
Banks have traditionally suggested that
homeowners borrow no more than
2-1/2 times the family income for a
home mortgage. For example, a family
with total annual before-tax income of
$50,000 should plan to allocate no more
than $125,000 towards a home mortgage.
Renters should typically plan to spend
about 1-week's take-home pay each
month for rent (2).
The National Association of Realtors
publishes two housing affordability
indexes showing the median income
American families need to qualify for a
mortgage on a median-priced existing
single-family home or a first-time buyer
starter home (9). For example, in July
1991, an affordability index of 111.6
2Housing costs included mortgage principal ,
interest, taxes, insurance, and owner association
fees.
1992 Vol. 5 No.2
meant that a family with a median
income of $36,295 should have about
111.6 percent of the income to qualify
for a conventional loan covering 80 per­cent3
of the median-priced existing
single-family home- $101,900 (9).
The Federal National Mortgage
Association (FNMA) states that
monthly housing payments (principal
and interest, taxes, insurance, and
associated costs) for a conventional
loan cannot exceed 28 percent of gross
monthly family income, and total family
debt cannot exceed 36 percent of that
amount (6).
How much are families spending for
housing? Housing expenditure estimates
vary depending on the data source and
methods used in calculations. Median
monthly 1987 residential housing costs
were $375 for all homeowners and
$399 for all renters (12). Recent 1989
home buyers, however, reported making
average monthly mortgage payments
of $1,054 on a median-priced home at
$129,800 (12). Mean and median housing
cost estimates are not directly comparable
but indicate what the average family
spends and what families at the 50th
percentile of the family distribution are
spending for housing.
A study of single (never-married) male
homeowners and renters living alone
reported average 1987 housing costs of
$5,153 a year (shelter, utilities, fuels,
public services, home furnishings,
equipment, and household operations)
or about $429 a month (5).
This article examines what families
spent for housing in 1989 and addresses
two major questions: (1) What are the
demographic characteristics, housing
characteristics, and expenditures of
homeowners and renters? and
3 Assumes a downpayment of 20 percent.
(2) are families with high housing
expenses different from those with
average housing expenses relative to
select demographic and housing charac­teristics
and expenditure variables?
It was hypothesized that families with
high housing expenditures are families
experiencing, or heading toward, finan­cial
difficulty. Results may be used by
families, financial planners, credit
counselors, mortgage lenders, attorneys,
realtors, and professionals interested
in diagnosing or advising families with
high housing obligations.
Data and Sample
Data for this study are from the Interview
component of the 1989 Consumer
Expenditure Survey (CE), conducted by
the Bureau of the Census for the Bureau
of Labor Statistics (1 4). The CE collects
data on household expenditures, income,
and major socioeconomic and demo­graphic
characteristics. A national
sample of consumer units4 is interviewed
once each quarter for five consecutive
quarters; the first interview is used for
bounding purposes. Using a rotating
sample design, about one-fifth of the
sample is replaced each quarter. The
1989 CE contains information from
about 20,000 quarterly interviews. In­come
data are annual, and expenditure
data are multiplied by four to provide
estimates of annual expenditures. Data
are weighted to represent the U.S. non­institutionalized
population.
4A consumer unit consists of either: ( I) all
members of a particular household who are
related by blood, marriage, adoption, or other
legal arrangement; (2) two or more people living
together who pool their incomes to make joint
expenditure decisions; or (3) a person living alone
or sharing a household with others or living a a
roomer in a private home or lodging house or in
permanent living quarters in a hotel or motel, but
who is financially independent. To be considered
financially independent, at least two of the three
major expense categories (housing, food, and
other living expenses) have to be provided by
the respondent.
3
•
4
This study
estimates that
about 8 percent
of homeowners
and 21 percent
of renters have
high housing
expenditures.
Families with income below the 1989
poverty thresholds (8) were excluded
from analysis to eliminate potential
distortion in results due to the extreme
plight of poverty-level households.
According to a 1990 report of the Joint
Center for Housing Studies at Harvard
University, 68 percent of poverty-level
renters paid over 50 percent of their
1987 income for housing (1). Thus,
for the remainder of this article, home­owners
and renters refer only to those
who were not poor.
Guidelines set by the FNMA were used
to identify families in this study with
high housing expenses. Homeowners
with high housing costs were defined as
those with monthly mortgage interest,
taxes, insurance, and owner association
fees exceeding 28 percent of monthly
before-tax family income. Mortgage
payments to principal, although desired,
could not be included in housing expense
estimates since they were not available
in the CE survey. A study using data
from the 1989 National Housing Survey
showed that longtime homeowners pay
more towards mortgage principal than
recent home buyers (8). Therefore, the
number of homeowners with high housing
expenses-particularly longtime home­owners-
is likely to be underestimated.
Renters with high housing costs were
defined as those with monthly housing
cost exceeding 28 percent of before-tax
income. Housing costs of renters
included rent and tenant insurance.
The final weighted sample, reflecting
the U.S. population of nonpoor5
homeowners and renters in 1989,
included about 65.1 million consumer
units--44.8 million homeowners and
5Nonpoor families are defined as those with total
1989 before-tax family income above 125 percent
of the 1989 poverty thresholds (1 0).
20.3 million renters (unweighted n =
13,963-9,613 homeowners and 4,350
renters). All were complete income
reporters.6
Eight percent of all nonpoor homeowners
and 21 percent of all nonpoor renters
had high housing expenses in 1989.
In all, about 8 million families-3.7
million homeowners and 4.3 million
renters-were found to have high housing
expenses (unweighted n = 1,781; 863
homeowners and 918 renters).
Analysis
Means and frequency distributions were
used to: (a) describe and analyze the de­mographic
and housing characteristics
of non poor homeowners and renters
with high housing expenditures, and
(b) compare them with those of the
population. Variables used in analysis
were: family size; number of children
under 18 years; number of earners;
reference person's age, education,
occupation, and race; market value
of home; housing tenure; number of
rooms, bedrooms, and bathrooms;
housing structure; region; before-tax,
after-tax, and per capita income; total
annual and per capita expenditures; and
number of automobiles. Annual family
expenditures were examined for housing,
transportation, food, clothing, personal
insurance, pensions and Social Security,
health care, entertainment, and other
miscellaneous expenditures.
6Complete income reponers·are respondents who
provide values for major sources of income such
as wages and salaries, self-employment income,
or Social Security income. They may not have
provided a full accounting of income from minor
sources (14).
Family Economics Review
Characteristics of Families
With High Housing Expenses
Homeowners. Table I shows that about
8 percent of all homeowners had high
housing expenses in 1989. Homeowners
with high housing costs were most
likely to be married or single without
children (58 percent and 24 percent).
Families were small (2.6 members on
average), with one child under age 18
and one earner. The majority of reference
persons 7 were white (82 percent),
middle age (50 years on average),
with a high school education or more
(81 percent). Most families with high
housing expenses were employed or
self-employed (63 percent and 8 per­cent),
although over one-quarter were
retired or not working (29 percent).
Compared with all homeowners, those
with high housing expenses were about
the same age and had about the same
family size, number of children under
age 18, and number of earners. They
were slightly more likely than home­owners
in the population to be childless
singles or female single parents, Asian
or Hispanic, and retired, not working,
or self-employed.
Table 2, p. 6, shows that homeowners
with high housing expenses typically
owned a seven-room (three bedrooms,
two bathrooms) single-family home
with a market value of $143,030. Most
(82 percent) families with high housing
expenses had a mortgage. Mortgage
interest, taxes, insurance, and related
expenses averaged $13,508 annually
or $1,126 per month. Over one-third
of homeowners with high housing
outlays lived in the urban West.
7Reference person is the first family member
mentioned by the survey respondent when asked
to "start with the name of the person or one of
the persons who owns or rents the home." The
relationship of all other consumer unit members is
determined by this person. The reference person
may be the respondent.
1992 Vol. 5 No.2
Table 1. Demographic characteristics of non poor families with high
housing expenses, 1 1989
High housing High housing
Characteristics expense All expense All
owners owners renters renters
Number of families 3,737 44,757 4,290 20,321
(weighted, in thousands)
Average family characteristics
Family size 2.6 2.8 1.8 2.1
Children under 18 0.7 0.7 0.4 0.5
Earners 1.3 1.6 1.0 1.4
Age of reference person 49.5 50.8 47.0 39.2
Before-tax income $33,053 $41,733 $16,777 $26,543
Total expenditures $42,418 $32,769 $21,208 $23,158
Percent Percent
Family type
Married without children 25.2 29.9 13.5 14.7
Married with children 32.6 38.0 11.2 19.5
Single male parent .4 .7 1.7 l.I
Single female parent 3.2 1.9 4.4 4.8
Single male 9.0 6.7 25.4 23.9
Single female 15.1 9.4 27.8 19.4
Other families 14.5 13.4 16.0 16.6
Reference person
Race
Non-Hispanic (nH) White 81.7 89.0 75.1 76.2
nH Black 4.7 5.8 12.8 12.7
nH Asian, Amerindian, other 5.5 2.0 3.7 2.9
Hispanic 8.1 3.2 8.4 8.2
Education
Elementary or less 9.1 8.7 11.3 7.6
Som~ high school 9.4 10.2 12.4 10.9
High school graduate 22.2 30.4 29.1 30.2
Some college 24.6 22.7 27.8 28.2
College graduate 15.3 13.4 10.3 13.6
Graduate school 19.4 14.6 9.1 9.5
Occupation
Employed2 62.9 68.8 66.5 81.7
Self-employed 8.3 7.7 3.7 3.4
Not working 5.7 4.4 9.1 5.9
Retired 23.1 19.1 20.7 9.0
1The measure of high housing expenditures used was shelter expense (mortgage interest, taxes, insurance,
and owner association fees for homeowners; rent and tenant insurance for renters) exceeding 28 percent of
annual before-tax famjly income. Estimates understate mortgage expense because CE does not include
~ayments to principal.
Employed includes: manager, professional; technical, sales, administrative support; service; farming,
forestry, fishing; production, craft, repair; operator, fabricator, laborer; and Armed Forces.
5
• Compared with all
homeowners, those
with high housing
expenses were ...
slightly more likely
... to be childless
singles or female
single parents,
Asian or Hispanic,
and retired, not
working, or self-employed.
6
Table 2. Housing characteristics of non poor families with high housing
expenses/ 1989
High housing High housing
Characteristics expense All expense All
owners owners renters renters
Average housing characteristics
Market value of home $143,030 $98,318 NA2 NA
Percent homeowner 100 100 NA NA
With mortgage 82.1 66.3 NA NA
Without mortgage 17.9 33.7 NA NA
Percent renter NA NA 100 100
Shelter expenditures $13,508 $4,692 $6,697 $4,725
Number of rooms 6.5 6.4 4.2 4.4
Bedrooms 3.1 3.0 1.9 2.0
Bathrooms 2.1 1.9 1.3 1.3
Percent Percent ---
Housing structure
Detached 79.5 84.7 22.2 27.0
Multiunit 16.2 9.0 75.4 68.9
Mobile home or trailer 3.9 6.0 .7 2.3
Other .4 .3 1.7 1.8
Region
Urban
Northeast 18.9 18.0 28.5 20.7
Midwest 16.4 22.3 14.3 20.2
South 20.5 26.5 20.2 27.5
West 34.3 18.2 33.1 24.5
Rural 9.9 15.0 3.9 7.1
1The measure of high housing expenditures used was shelter expense (mortgage interest, taxes,
insurance, and owner association fees for homeowners; rent and tenant insurance for renters) exceeding
28 percent of annual before-tax family income. Estimates understate mortgage expense because CE does
not include payments to principal.
2NA =Not applicable.
Compared with homeowners in general,
those with high housing expenses
tended to live in more expensive,
mortgaged homes in the urban West.
Homeowners with high housing
expenses owned homes with higher
market values and paid nearly three
times more than the average home­owner
for mortgage interest, taxes,
insurance, and owner association fees.
Relative to the type of housing structure
purchased by all homeowners, those
with high housing expenditures were
nearly twice as likely to live in multi­unit
structures such as town houses,
duplexes, or condominiums. This may
reflect higher homeowner association
fees or lower average household
incomes.
Renters. About 21 percent of all renters
had high housing expenses in 1989
(table 1). Renter families with high
housing expenses were small (1.8
members on average), with one earner,
and not likely to have children under
age 18. Reference persons tended to
Family Economics Review
Percentage of families with high housing expenses within five income groups, 1989
$thousands
55.0+
40.0-54.9
30.0-39.9
15.0-29.9
0-14.9
Owners
16%
12%
14%
Renters
8%
Note: Families with income below the 1989 poverty income thresholds are excluded.
be middle age (47 years old), single
without children (53 percent), high
school graduates or more (76 percent).
About two-thirds of this group worked,
9 percent were unemployed, and 21 per­cent
were retired.
Compared with renters in the general
population, renters with high housing
expenses had slightly smaller families;
about the same number of earners and
children under age 18; and reference
persons who were older, more likely to
be single without children, less likely
to be employed, and more likely to be
retired or not working than all renters.
There was no discernible difference in
the racial composition of renters with
and without high housing expenses.
Renters with high housing expenses
typically rented a four-room apartment
with two bedrooms and one bathroom
(table 2). Rent and tenant insurance
averaged $6,697 per year or $558 per
month-about 42 percent more ($1 ,972
per year or $164 per month) than the
1992 Vol. 5 No.2
average renter paid. Most renters with
high housing expenses lived in multi­unit
structures, in the urban West or
Northeast.
Income and Expenditures
Income. Nonpoor homeowners and
renters with high housing expenses allo­cated
41 and 40 percent, respectively,
of average before-tax family income for
monthly shelter payments, compared
with shelter-to-income ratios of 11 and
18 percent by the average nonpoor
American homeowner or renter.
A greater percentage of homeowners
and renters with annual before-tax
family income under $30,000 had
high housing expenses than those with
income over $30,000 (see figure).
About 16 percent of all homeowners
with annual family income under
$15,000 and 10 percent of all home­owners
with income between $15,000
and $30,000 had high housing expendi­tures
in 1989, compared with 46 and 19
percent of all renters in comparable
46%
income categories.8 As would be
expected, when income increased the
percentage of families with high housing
expenditures generally decreased.
Table 3, p. 8, shows that families with
high housing expenses had lower
before-tax income, on average, than
the general population. Homeowners
with high housing expenses had income
($33,053) averaging 21 percent less than
aiJ homeowners; corresponding renters '
income ($16,777) was 37 percent
lower than all renters. After-tax income
relationships supported this trend.
Per capita income comparisons were
slightly more favorable than those for
before- or after-tax income results.
Before-tax per capita income estimates
for homeowners and renters with high
housing expenses were $15,011 and
$11,208, 15 and 29 percent lower than
those for all homeowners and renters.
8Estimates do not include families with income
below the 1989 poverty income thresholds.
7
Table 3. Mean income and expenditures of non poor families with high housing expenses, 1 1989
Income High housing High housing
and expense All expense All
expenditures owners owners renters renters
Before-tax income $33,053 $41,733 $16,777 $26,543
After-tax income 29,908 37,621 15,730 24,258
Per capita income 15,011 17,600 11,208 15,694
Total expenditures 42,418 32,769 21,208 23,158
Per capita expenditures 19,518 13,714 13,795 13,503
Number of automobiles 1.4 1.6 0.9 1.1
QQl.lars ~2 I2oll.ar.s. ~2 l2cllru:s ~t2 I2cllar£ ~2
Housing $18,750 48 $9,834 30 $9,054 47 $7,370 35
Shelter 13,508 35 4,692 14 6,697 36 4,725 24
Utilities 2,407 7 2,262 9 1,264 7 1,338 7
Repairs 953 3 922 1 191 1 216 0
Household operations 605 634 2 248 1 322 1
Home furnishings 1,277 3 1,323 4 654 2 767 3
Transportation 6,721 12 6,592 16 3,366 11 4,897 16
Food at home 3,494 10 3,509 13 2,483 13 2,549 13
Food away from home 1,605 4 1,518 5 923 4 1,111 5
Clothing 1,740 4 1,631 5 980 4 1,280 6
Personal insurance3 584 1 506 2 161 197 1
Pensions, Social Security 2,809 6 3,410 10 1,125 5 2,083 9
Health care 1,921 5 1,742 7 965 5 888 4
Entertainment 2,218 4 1,813 5 766 3 1,088 4
Other4 2,576 6 2,215 7 1,386 7 1,694 7
1The measure of high housing expenditures used was shelter expense (mortgage interest, taxes, insurance, and owner association fees for homeowners; rent and
tenant insurance for renters) exceeding 28 percent of annual before-tax family income. Estimates understate mortgage expense because CE does not include
~ayments to principal.
Percentage of total expenditures. Calculated on a family-by-family basis.
3Personal insurance includes life and endowment insurance, and annuities.
40ther includes expenditures for tobacco, alcoholic beverages, personal care, cash contributions, education, reading, and miscellaneous . .
Expenditures. Homeowners with high
housing costs had 29 percent higher
expenditures overall than those in the
general population-$42,418 compared
with $32,769. In contrast, renters with
high housing expenses had total
expenditures that were 8 percent less
than those of all renters-$21,208
compared with $23,158.
8
On a per capita basis, homeowners with
high housing costs spent 42 percent
more than all homeowners, whereas
corresponding renters spent only 2 per­cent
more than the general population.
Results raise some interesting questions.
Are homeowners with high housing
expenses prone to overspend? Are
they victims of the hidden costs of
home ownership? Are homeowners or
renters with high housing expenses
victims of the housing market?
Not surprisingly, total annual expendi­tures
exceeded after-tax income. by a
large margin for homeowners and renters
with high housing expenses (42 percent
and 35 percent). Families with high
Family Economics Review
housing expenditures had total yearly
deficits (expenditures in excess of
after -tax income) of $12,510 and
$5,478, respectively.
How are families with high housing
costs and large income deficits
managing to stay financially solvent?
They may be potentially high-income
families, such as professionals or
entrepreneurs, anticipating substantial
income increases. Some families may
be losing income temporarily due to an
unexpected event such as a job layoff
or illness. Families with variable income
from commissions, farming, or self­employment
may be having a bad year.
They may be borrowing against, or
cashing in, investments and savings, or
extending themselves on credit as a
temporary solution to an income loss (7).
Still other families may be deficit spend­ing
because of poor planning or mis­management
of personal finances. The
reason for excessive spending on housing,
the duration of deficit spending, and the
ability to cope with financial hardship
will largely determine whether the family
can remain financially solvent.
In the general population, average
annual expenditures were less than
available after-tax family income by
13 percent for homeowners and 5 per­cent
for renters. This group appears to
be saving whereas the high housing
expense group appears to be borrowing
or spending out of savings.
Housing. Homeowners with high
housing expenses spent nearly twice
as much on total housing costs (shelter,
utilities, repairs, household operations
and furnishings) as those in the popula­tion-$
18,750 compared with $9,834
(table 3). Housing expenses consumed
the largest share of total expenditures-
48 percent for homeowners with high
1992 Vol. 5 No.2
housing expenses, compared with 31
percent in the population. Housing costs
were comprised primarily of shelter and
utility expenses-85 percent of total
housing expense in families with high
housing expenses and 71 percent for all
homeowners.
Renters with high housing expenditures
spent 23 percent more for housing than
all renters-$9,054 compared with
$7,370. Housing expenses required 46
percent of the total annual expenses for
renters with high housing costs and 35
percent of total annual expenditures for
all renters. Shelter and utilities accounted
for 88 percent of the housing expenses
for renters with high housing costs and
82 percent of housing costs for all renters.
Transportation. The average family
owned one car. Budget shares for trans­portation
were lower for owners and
renters with high housing expenses
(12 percent and 11 percent) than for
families in comparable populations
(16 percent each). Homeowners with
high housing expenses spent about the
same on transportation as the population,
whereas renters with high housing
expenses spent slightly less for transpor­tation
than all renters. Families with
high housing costs may be cutting
back on transportation expenses by not
owning a second car, using more public
transportation, carpooling or walking
more, purchasing or maintaining lower
priced cars, or keeping cars longer than
usual. Factors such as location of home
(closer to work, for example) and work
status may also affect transportation
costs.
Food. Homeowners with high housing
expenses do not appear to be cutting back
on food expenses. On a dollar-for-dollar
basis, food expenditures were not
discernibly different for owners and
renters, with and without high housing
expenses.
• Compared with
renters in the
general population,
renters with high
housing expenses ...
were older, more
likely to be single ...
retired or not
working.
9
Clothing. Clothing budget shares of 4
or 5 percent were fairly stable across
all four homeowner and renter groups.
Homeowners and renters with high
housing expenses tended to spend 4
percent on clothing in 1989-1 percent
less than homeowners and renters in the
population.
Personal insurance. Personal insurance
(life insurance, endowment insurance,
and annuities) budget shares of l or
2 percent also appeared to be stable
across homeowner and renter groups.
Homeowners and renters with high
housing costs, as well as renters in the
population, spent 1 percent, on average,
for personal insurance in 1989, whereas
homeowners in the population spent 2
percent on personal insurance.
Pensions and Social Security. Home­owners
and renters with high housing
expenses had lower pension and Social
Security expenditure shares than com­parable
families in the population (6
and 5 percent, compared with 10 and 9
percent). Government retirement, rail­road
retirement, self-employment
retirement plans, and Social Security
expenses were included in this expense
category. In dollars, high-housing-cost
homeowners and renters spent consider­ably
less on pensions and Social Security
than the population-IS and 46 percent
Jess, respectively.
Families with high housing expenditures
may spend less for retirement-related
expenses because they are already
retired. Also, since homeowners and
renters with high housing costs have
lower average incomes than the popula­tion
and because retirement benefits
are frequently based on earnings, their
pension and Social Security expenses
may justifiably be lower.
Health care. Health care budget shares
of 4 to 7 percent were fairly close for all
four groups. Families with high housing
expenses spent slightly more in dollars
10
than homeowners and renters in the
population.
Entertainment. Entertainment budget
shares were generally stable across
homeowner and renter families, with
and without high housing expenses.
Homeowners and renters with high
housing expenditures had entertainment
budget shares of 4 and 3 percent, com­pared
with 5 and 4 percent by home­owners
and renters in the population.
Other. Expenditures for other goods
and services included tobacco, alcoholic
beverages, personal care, cash contribu­tions,
education, reading, and miscella­neous
goods and services. At 6 or 7
percent, these expenditures appeared
stable across the four family groups.
Summary and Implications
This study estimates that about 8 per­cent
of homeowners and 21 percent of
renters have high housing expenditures.
These families may currently have
trouble meeting financial obligations, or
they may experience financial difficulty
sometime in the future. It appears that
when housing expenses are high, families
try to reduce spending slightly in each
expenditure category. Results tentatively
suggest that cutbacks on transportation
or retirement-related expenses are most
pronounced. Families may also try to
decrease savings or increase debt to
make ends meet.
Results help identify the types of families
most likely to have higher housing
expenses than they can safely afford.
Families most likely to have high
housing costs include lower middle-to
middle-income families, renters,
childless singles, female single-parent
homeowners, Asian and Hispanic home­owners,
and renters who are retired or
not working.
Although the demographic characteristics
of homeowners with high housing
expenses were not discernibly different
from the population, there were propor­tionately
more singles, single-female
parents, and minorities in this group.
Homeowners with high housing expenses
had considera~ly different housing
characteristics, lower incomes, and
higher overall expenditures than the
average homeowner. Additional
research would be helpful to better
understand the socioeconomic and
psychological dimensions underlying
why some homeowners financially
overextend themselves for housing
while others do not.
Renters with high housing costs
included proportionately more retirees,
unemployed persons, and single females.
Their income and expenditures were
lower than the general population of
renters. With lower incomes and no
home equity, they appear to be even
more economically vulnerable than
their homeowner counterparts.
Results of this study suggest that high
expenditure homeowners differ from
high expenditure renters on select
demographic, housing, and expenditure
characteristics. Homeowners with high
housing expenditures may be a diverse
group, in and of themselves. Additional
research is needed to determine the
percentage of families with temporary
housing cost problems (for example,
young professionals anticipating signifi­cant
income increases) and to compare
their characteristics with those who
may actually be experiencing, or
heading toward, bankruptcy.
Financial planners and counselors,
mortgage lenders, housing educators,
and legislators may use findings to
develop policies and programs to
help families avoid financial trouble
associated with the high cost of
housing.
Family Economics Review
References
1. Apgar, W.C., et al. 1990. The State of the Nation's Housing 1990. Joint Center
for Housing Studies of Harvard University.
2. Bailard, T.E., Biehl, D.L., and Kaiser, R.W. 1986. Personal Money Management.
Science Research Associates, Inc., Chicago, IL.
3. Barner, P., Laquatra, J., and Ponessa, J.T. 1988. Housing affordability in the
Northeast. Housing and Society 15(3):207-221.
4. Callis, R.R. 1990. Homeownership Trends in the 1980's. Series H-121, No.2.
U.S. Department of Commerce, Bureau of the Census.
5. Dinkins, J.M. 1991. Housing expenditures for never-married men: A focus on
one-person consumer units. Family Economics Review 4(2): 18-26.
6. Fronczek, P.J. and Savage, H.A. 1991. Who Can Afford to Buy a House? Current
Housing Reports H121/91-l. U.S. Department of Commerce, Bureau of the Census.
7. Guadagno, M.A.N. 1983. Economic stress: Family financial management. In:
H. I. McCubbin and C.R. Figley, editors. Stress and the Family: Coping With
Normative Transitions, Volume 1. Brunner /Maze), New York. pp. 201-217.
8. Naifeh, M. 1991. House-Poor/House-Rich. Statistical Brief, SB/91-19. U.S.
Department of Commerce, Bureau of the Census.
9. National Association of Realtors. 1991. Home Sales 5(7): 12.
10. Nelson, C.T. and Lamas, E.J. 1990. Measuring the Effect of Benefits and Taxes
on Income and Poverty: 1989. Current Population Reports, Consumer Income.
Series P-60, No. 169-RD. U.S. Department of Commerce, Bureau of the Census.
11. Schwenk, N.E. 1988. Housing expenditures. Family Economics Review No. I,
pp. 1-7.
12. U.S. Department of Commerce, Bureau of the Cer.sus. 1991. Statistical Abstract
of the United States: 1991. [lllth ed.]
13. U.S. Department of Labor, Bureau of Labor Statistics. 1990. Consumer
Expenditures in 1989. News. USDL No. 90-616.
14. . 1989. Consumer Expenditure Survey: 1989 Interview
Survey Public Use Tape and Documentation.
15. Welniak, E.J., Jr. and DeNavas, C. 1991. Money Income of Households, Families,
and Persons in the United States: 1988 and 1989. Current Population Reports,
Consumer Income. Series P-60, No. 172. U.S. Department of Commerce, Bureau
of the Census.
1992 Vol. 5 No.2 11
12
•
Payments of Child Support
and Alimony
By Walter Ellis
Assistant Professor 1
University of New Hampshire
Mark Uno
Economist
Family Economics Research Group
This study examines payments of child support and alimony using the
1988-89 Consumer Expenditure Surveys. Data were analyzed by selected
socioeconomic characteristics. Child support payments were highest among
single males, whites, and consumer units with no children present. These
payments were also higher in households with an older and more educated
reference person and higher household incomes. Depending on consumer
unit characteristics, child support expenses ranged from 7 to 20 percent of
before-tax household income. Alimony payments were made more often by
married-couple units, whites, households with no children present, older
and more educated reference persons, or higher income households. These
findings are compared with those of a Census Bureau study on receipt of
child support and alimony.
any researchers have
examined child support
and alimony as income
sources for families
(1 ,5 ,6,7,8,12,13). Child support and
alimony as household payments or
expenditures have received less
attention (2 ,3,1 1). Frequency of payments
has been the focus of this latter research.
A study by the Interagency Low Income
Opportunity Advisory Board (4) con­cluded
that" ... not enough is known
about absent parents (primarily fathers)­their
incomes, family circumstances,
their geographic proximity to their
children, (and) their ability to pay child
support ... " (p. 119). To help fill this
gap, this study examines ( 1) characteris­tics
of households making child support
payments and their average annual
payments, and (2) characteristics of
households making alimony payments.
1Visiting Professor, Family Economics Research
Group.
Data
Data are from the Interview component
of the 1988-89 Consumer Expenditure
Surveys (CE), conducted by the Bureau
of the Census for the Bureau of Labor
Statistics (BLS) (1 0). The CE is an
ongoing survey that collects data on
household expenditures, income, and
major socioeconomic and demographic
characteristics. A national sample of
consumer units2 (the terms "households"
2 A consumer unit consists of either: (I) all
members of a particular housing unit who are
related by blood, marriage, adoption, or other
legal arrangements; (2) two or more people living
together who pool their incomes to make joint
expenditure decisions; or (3) a person living alone
or sharing a household with others or living as a
roomer in a private home or lodging house in
permanent living quarters in a hotel or motel, but
who is financially independent. To be considered
financially independent, at least two of the three
major expense categories (housing, food , and
other living expenses) have to be provided by
the respondent.
Family Economics Review
and "families" will also be used to
denote consumer units in this article) is
interviewed once each quarter for five
consecutive quarters; the first interview
is collected only for bounding purposes.
Using a rotating sample design, about
one-fifth of the sample is replaced each
quarter.
The 1988-89 CE contains information
from about 40,000 quarterly interviews
representing an average 82.2 million
households each year. Income data are
annual and expenditure data are for a
quarter. Expenditures may be annualized
by multiplying by four according to
BLS methodology. For this study, only
consumer units who were complete
income reporters3 and had positive
expenditures on child support and/or
alimony were selected. The sample
consisted of 1,164 households that
reported child support payments and
188 that reported alimony payments. In
households with two or more members,
the CE did not identify which member
was responsible for child support or
alimony payments. Also, recipients
were not identified.
About one-quarter of those that made
alimony payments also made child
support payments. Therefore, compari­sons
of the two groups should be made
with caution because they are not
mutually exclusive. Average annual
alimony payments were not determined
because of the small sample size.
Data were weighted to represent the
U.S. noninstitutionalized population.
The weighted sample represents an
estimated 2.91 million households
making child support payments (3.5
percent of all families) and 440,000
making alimony payments (0.5 percent
of all families) each year during the
1988-89 period.
3Complete income reporters are those who pro­vided
values for major sources of income such as
wages and salaries, self-employment income, and
Social Security income. However, even complete
income reporters may not have provided a full
accounting of all income from all sources.
1992 Vol. 5 No.2
It should be noted that the households
in this study are those that actually
made child support and alimony pay­ments
in 1988-89-not those required
to do so. A substantial proportion of
males who were required to make child
support payments in 1989 never made
them; others paid an amount Jess than
that due (see box 1, p. 16).
Part 1- Consumer Units
Making Child Support
Payments
Characteristics
Of consumer units who reported making
child support payments, 51 percent
were married-couple households, 30
percent were single males, and 19 per­cent
were classified as "other" house­holds
(table 1, p. 14). "Other" consumer
units comprised a wide assortment of
Jiving arrangements. They were often
males living with others such as parents
or nonrelatives, but a small percentage
(1 percent) were single females. The
majority of consumer units were white
(89 percent). Most did not have children
under age 18 living in the home (60
percent).
The average age of the reference person 4
was 39; 13 percent were below age 30
and 23 percent were age 45 or over.
The highest educational level attained
by 35 percent of reference persons was
completion of high school; 17 percent
had less than a high school diploma
and 19 percent had a college degree or
more. Before-tax income for families
making child support payments averaged
$37,474; 26 percent had before-tax
income below $20,000 and 24 percent
had an income of $50,000 or over.
4A reference person is identified by the respondents
when asked "to start with the name of the person
or one of the persons who owns or rents the
home."
Payments
Annual child support payments averaged
$3,339 for all consumer units making
such payments (table 1), accounting for
9 percent of their before-tax household
income. Single males had higher child
support expenses than "other" consumer
units and married couples ($4,031 vs.
$3,533 and $2,857). Single males also
allocated the greatest share of income to
child support (14 percent), compared
with other consumer unit types. The
higher payments by single males may
reflect support for more children or
indicate that they have fewer financial
responsibilities and are better able to
pay their child support obligations.
Also, people paying child support in
"other" consumer units and married­couple
households may have lower
child support payments if these payments
had been set years ago and not indexed
to inflation.
Although "other" consumer units and
married-couple households made lower
child support payments than did single
males, they had higher average incomes.
The income of these households, how­ever,
comprises that of all members.
Child support is typically based on the
income of the parent without primary
physical care of the child. It may be that
the individual income of this parent in
"other" consumer units and married­couple
households is below that of
single males.
White consumer units made higher
child support payments than non-white
units ($3,463 vs. $2,362) and allocated
a larger share of their income to these
payments (9 percent vs. 7 percent).
They also had a higher average income
than non-white units. Households with­out
children under age 18 present in the
home allocated more to child support
and a larger percentage of their income
($3,621 and 10 percent) than those with
children present ($2,912 and 7 percent).
13
Table 1. Annual child support payments and characteristics of
consumer units1 making them, 1988-89
Characteristic
Overall
Type of consumer unit
Married couple
Single male
Other
Race
White
Non-white
Presence of children under age 18
Children present
No children present
Age of reference person
29 or under
30-34
35-39
40-44
45 or over
Highest education obtained by
reference person
Less than high school
High school
Some college
College or more
Before-tax income
Below $20,000
$20,000- $29,999
$30,000-$39,999
$40,000- $49,999
$50,000 or more
Payment
Percent Amount
100 $3,339
51 2,857
30 4,031
19 3,533
89 3,463
11 2,362
40 2,912
60 3,621
13 2,532
22 3,372
24 3,262
18 3,428
23 3,801
17 2,488
35 2,756
29 3,532
19 4,860
26 2,529
18 2,683
20 3,148
12 3,209
24 4,918
Percent
of income
9
7
14
10
9
7
7
10
10
10
9
7
9
10
9
9
9
20
11
9
7
7
1 An estimated 2.9 1 million consumer units made child support payments each year during the 1988-89
period.
14
Those without children present, how­ever,
had a lower average income than
households with children. Those with­out
children in the home may be more
likely to pay their child support since
they may have fewer competing
demands for their financial resources.
Child support payments generally
increased with the age and education of
the reference person. By age, families
with a reference person under age 30
reported the lowest annual child support
payments ($2,532) and those with a
reference person age 45 or over reported
the highest ($3,801). Households with a
reference person under age 30 had the
lowest average income, whereas those
with a reference person age 45 or over
had the second highest income of the
five groups. The share of before-tax
income allocated to child support
payments ranged between 7 and 10
percent for households by age groups
of reference persons.
By education, families with a reference
person whose highest level of education
was elementary or some high school
made the lowest child support payments
($2,488), and those with a reference
person with a college degree or more
made the highest ($4,860). Because
household income rose as educational
level of the reference person increased,
child support payments accounted for
9 or 10 percent of household income
regardless of that educational level.
Consumer units with before-tax income
below $20,000 had the lowest child
support payments ($2,529), and those
with an income of $50,000 or more had
the highest ($4,918). For families with
before-tax income below $20,000, child
support payments accounted for 20 per­cent
of income; for those with an income
of $50,000 or more, these payments
accounted for 7 percent of income.
Family Economics Review
Part 2- Consumer Units
Making Alimony Payments
Characteristics
Of consumer units with alimony pay­ments,
40 percent were married-couple
households, 38 percent were single
males, and 22 percent were "other"
consumer units (table 2). As with child
support, many of these "other" house­holds
were males living with others.
Most payers of alimony were white
(94 percent). Most (86 percent) did not
have children under age 18 living in the
home, which likely reflects the age of
the reference persons. Average age of
reference persons in households making
alimony payments was 48; only 3 per­cent
were under age 30, whereas 56
percent were 45 or over.
Reference persons in families making
alimony payments had a high educa­tional
level. Forty-seven percent had a
college degree or more; only 8 percent
had less than a high school diploma.
This high educational level is reflected
in the before-tax income of these
households. Forty-six percent had a
household income of $50,000 or more,
compared with only 15 percent that had
an income below $20,000.
Comparison With Census
Study
This study examined child support and
alimony as a household payment or
expenditure. A Census Bureau study
(see boxes, pp. 16-17) examined child
support and alimony received by
women. How do the findings of this
study, based on Consumer Expenditure
Survey data, compare with those of the
Census Bureau study, which used data
from the Current Population Survey?
1992 Vol. 5 No.2
Table 2. Characteristics of
consumer units1 making alimony
payments, 1988--89
Characteristic
Type of consumer unit
Married couple
Single male
Other
Race
White
Non-white
Presence of children
under age 18
Children present
No children present
Age of reference person
Under 29
30-34
35-39
40-44
45 or over
Highest education obtained
by reference person
Less than high school
High school
Some college
College or more
Before-tax income
Below $20,000
$20,000-$29,999
$30,000- $39,999
$40,000- $49,999
$50,000 or more
Percent
40
38
22
94
6
14
86
3
11
9
21
56
8
22
23
47
15
10
21
8
46
1 An estimated 440,000 consumer units made
alimony payments each year during the 1988-89
period.
• Reference persons
in families making
alimony payments
had a high
educational level.
Forty-seven percent
had a college degree
or more.
15
Box 1-Census Study on Child Support Receipts
According to a Census Bureau study,
an estimated 4.95 million women with
children under age 21 were due child
support payments in 1989 as reported in
spring 1990 (6). Of these women, 51 per­cent
received the full amount awarded,
24 percent less than this amount, and the
remainder did not receive any payment.
Of women ( 15 years and older) receiving
child support (either the full amount or
a partial amount), the majority were
divorced or separated (55 percent);
33 percent were presently married and
12 percent were never married. Eighty­five
percent were white. Almost half
(48 percent) were age 30 to 39; 27 per­cent
were age 40 or over. For about half
(51 percent), a high school diploma was
the highest educational level obtained;
13 percent did not have a high school
diploma. Fifty-six percent had one child
present from an absent father and 33
percent had two children present.
Average annual child support received by
women was $2,995. This accounted for
18 percent of their before-tax household
income (income reported by all household
members). By marital status groups,
average child support received by
divorced women was the highest ($3,322)
and payments received by never-married
women were the lowest ($1,888). These
payments accounted for the same
percentage of household income for
the two groups (20 percent).
Annual child support payments received
by white women were higher than those
received by black women ($3,132 vs.
$2,263) and accounted for a larger share
of household income (19 percent vs.
16 percent). Older and more educated
women received larger child support pay­ments
than did younger and less educated
women. By women's age, child support
receipts ranged between 18 and 20 per­cent
of household income. By women's
educational level, child support declined
as a percentage of household income as
educational level rose.
Child support receipts increased in
dollar amount and as a percentage of
household income with the number of
children present from an absent father
until a household had three children.
Women with four or more children from
an absent father received lower child
support payments than those with two
children ($3,226 vs. $3,527).
Annual child support receipts of women receiving such payments, 1
by selected characteristics, 1989
Characteristic
Overall
Current marital status2
Married3
Divorced
Separated
Never married
Race
White
Black
Age
29 or younger
30-39
40 or over
Highest education obtained
Less than high school
High school: 4 years
College: I to 3 years
4 years or more
Number of children present
from an absent father
One
Two
Three
Four or more
Percent
100
33
44
11
12
85
15
25
48
27
13
51
23
13
56
33
9
2
Child support
Amount
$2,995
2,931
3,322
3,060
1,888
3,132
2,263
1,981
3,032
3,903
1,754
2,698
3,338
4,850
2,425
3,527
4,509
3,226
Percent
of income
18
20
17
20
20
19
16
20
18
19
21
20
18
16
15
20
30
26
1 An estimated 3.73 million women received child support payments in 1989; an estimated 1.23
million women due payments this year did not receive them.
2Excl udes a small number of currently widowed women whose previous marriage ended in divorce.
3Remarried women whose previous marriage ended in divorce.
Source: Lester, G.H., /991 , Child Support and Alimony: / 989, Current Populations Reports, Consumer Income, Series P-60, No. 173, U.S. Departmellf of
Commerce, Bureau of the Census.
16 Family Economics Review
The Census study found that about 3.73
mmion women received some child
support in 1989. This study, however,
found that 2.91 million consumer units
made child support payments in the
1988-89 period. Because this study
focused only on complete income
reporters, the population size was
reduced by about 14 percent. Also,
some men may be paying child support
to more than one former wife.
Average annual child support received
by women amounted to $2,995 in 1989
according to the Census study. This
study found that average child support
paid out was $3,339 in 1988-89, a dif­ference
of 11 percent. A similar finding
was made by Fletcher (3) who hypothe­sized
that the difference may reflect
informal expenditures on a child, in
addition to court-ordered child support,
by the parent with whom the child does
not reside. Also, men may be paying
child support to more than one former
wife.
Findings of the two studies are consistent
with regard to race. This study found
that non-whites paid less than whites,
and the Census study found that blacks
received less than whites. Findings are
also consistent with the Census study
with regard to age and education. This
study found that age and educational
level of reference persons in households
with child support payments were posi­tively
related to such payments, and the
Census study found that women's age
and educational level were positively
related to child support receipts.
Regarding alimony, the Census study
found that 920,000 women were due
alimony payments in 1989. No informa­tion
on the number who actually
received such payments was given,
although a 1985 Census study found
that 73 percent of women due alimony
that year received full or partial payment
(9). This study found that 440,000
consumer units reported making
1992 Vol. 5 No.2
Box 2-Census Study on Alimony A wards
According to a Census Bureau study (6), an estimated 3.19 million women had
been awarded alimony as reported in spring 1990. Of these, 29 percent were
supposed to receive payments in 1989. Of those ever awarded payments: most
(60 percent) were presently separated or divorced; 40 percent were married.
Most were white (90 percent). Seventy-five percent were age 40 or over. Almost
two-thirds (64 percent) of the women ever receiving alimony had not attended
college; 15 percent had a college degree or more. About three-quarters had no
children (from the absent father paying alimony) residing in the home. The study
did not contain data on amount of alimony payments.
Characteristics of women awarded alimony payments, 1989
Current mar1.t a I status t
Divorced
Married2
Separated
Race
White
Non-white
Age
18-29
30 - 39
40 or over
Highest education obtained
Less than 12 years
High school: 4 years
College: 1 to 3 years
4 years or more
Number of children present from an absent father
None
One or more
Percent
49
40
II
90
10
6
19
75
20
44
21
15
74
26
'Excludes a small number of current widowed women whose previous marriage ended in divorce.
2Remarried women whose previous marriage ended in divorce.
Source: Lester, G.H., 1991 , Child Support and Alimony: 1989, Current Population Reports,
Consumer Income, Series P-60, No. 173, U.S. Department of Commerce, Bureau of the Census.
alimony payments in the 1988-89
period. Again, focusing on complete
income reporters reduced the popula­tion
size by about 14 percent. However,
it appears that a larger number of
women were due alimony payments
than consumer units making such
payments in the 1988-89 period. Some
men may be paying alimony to more
than one woman. Further research is
needed to investigate this in more
detail.
17
References
1. Beller, A. and Graham, J. 1985. Variations in the economic well-being of
divorced women and their children: The role of child support income. in: M. David
and T. Smeeding, editors. Horizontal Equity, Uncertainty and Well Being.
University of Chicago Press, Chicago, IL.
2. Cherlin, A., Griffith, J., and McCarthy, J. 1983. A note on maritally-disrupted
men's reports of child support in the June 1980 Current Population Survey.
Demography 20(3):385-389.
3. Fletcher-Needles, C. 1989. A comparison of incomes and expenditures of male­headed
households paying child support and female-headed households receiving
child support. Family Relations 38(4):412-417.
4. Interagency Low Income Opportunity Advisory Board. 1988. Up From
Dependency: Supplement 4. U.S. Government Printing Office, Washington, D.C.
5. Landes, E. 1978. Economics of alimony. Journal of Legal Studies 7(1):35-63.
6. Lester, G. 1991. Child Support and Alimony: 1989. Current Population Reports,
Consumer Income. Series P-60, No. 173. U.S. Department of Commerce, Bureau of
the Census.
7. Robins, P. and Dickinson, K. 1984. Receipt of child support by single-parent
families. Social Service Review, pp. 622-641.
8. Sorenson, A. and MacDonald, M. 1983. An analysis of child support transfers.
In: J. Cassetty, editor. The Parental Child Support Obligation. D.C. Heath and
Company, Lexington, MA.
9. U.S. Department of Commerce, Bureau of the Census. 1989. Child Support and
Alimony: 1985. Current Population Reports, Special Studies. Series P-23, No. 154.
10. U.S. Department of Labor, Bureau of Labor Statistics. Consumer Expenditure
Survey: 1988-89 Interview Survey Public Use Tape and Documentation.
11. Wallerstein, J. and Corbin, S. 1986. Father-child relationships after divorce:
Child support and educational opportunity. Family Law Quarterly XX(2): 109-128.
12. Weitzman, L. 1981. The economics of divorce: Social and economic
consequences of property, alimony and child support. UCLA Law Review 28,
pp. 1181-1268.
13. Weitzman, L. and Dixon, R. 1980. The alimony myth: Does no-fault divorce
make a difference? Family Law Quarterly XIV(J):141-173.
18 Family Economics Review
•
• In 1990, 86 percent
of person trips and
88 percent of
person miles
traveled were in
private vehicles.
1992 Vol. 5 No.2
Trends in Transportation
By Joan C. Courtless
Family Economist
Family Economics Research Group
Using data from various government and industry sources, recent changes
in transportation patterns by U.S. consumers are reported. According to the
U.S. Department of Transportation, Americans are traveling more than ever.
Most travel is done in private vehicles, and 80 percent of all vehicle trips in
1990 were by automobile. The number of drivers per household in 1990
averaged 1.7, whereas the number of vehicles owned was 1.8. Consumers
allocate about 18 percent of their total expenditures for transportation. Since
1980, the annual cost of gasoline and oil, as a percentage of variable costs
related to owning and operating an automobile, has declined from 77 percent
to 68 percent. According to the U.S. Department of Energy, there is a strong
negative relationship between the price of gasoline and consumer demand.
Highway safety facts are reported, including fatality characteristics and laws
requiring the use of child restraints and safety belts. Other information
provided includes technologies developed for "smart" highways and the
6-Year lntermodal Surface Transportation Efficiency Act of 1991.
mericans are traveling more
than ever. From 1969 to
1990, the U.S. resident non­institutionalized
population
grew by 23 percent. During this same
period, the number of person trips I
grew by 74 percent and person miles of
travel,2 by 65 percent (5).
Traveling in private vehicles is the
preferred mode of travel. In 1990, 86
percent of person trips and 88 percent
of person miles traveled were in private
vehicles (table 1, p. 20).
1 A person trip is a trip by one or more persons in
any mode of transportation. Each person makes
one person trip; four persons traveling together in
one auto make four person trips.
2Each time one person travels I mile, one person
mile of travel results. Four persons traveling 5
miles in one vehicle account for 20 person miles
of travel.
Airplanes and Amtrak accounted for
less than 1 percent of person trips and
8 percent of person miles traveled in
1990 (5). Total number of passengers3
boarding domestic aircraft4 during 1990
was 423.7 million, up almost 2 percent
from 1989. There were 340.2 billion
passenger miles (one passenger trans­ported
1 mile) during 1990, up 3 per­cent
over 1989. Average length of a
passenger trip in scheduled service was
803 miles. Average number of passen­gers
carried per aircraft was 92, down
from 95 in 1989. On scheduled flights,
air carriers flew at an average 60 per­cent
of capacity, down 2 percent from
1989. Remaining seats could have been
used by passengers not considered to be
revenue-producing (see footnote 3) (16).
3Includes only revenue passengers; that is, those
paying the applicable tariff. People who are not
charged full fare-such as airline employees,
ministers, infants, the elderly, and the handi­capped-
are excluded.
4Includes those that operate within and between
the 50 States, the District of Columbia, Puerto
Rico, and the U.S. Virgin Islands; plus the United
States and Canada or Mexico.
19
Table 1. Mode of travel, 1990
Mode
Privately owned vehicle
Airplane, Amtrak
Bus, rail
Walking, school bus, bike, taxi
Person trips
86.2
.3
2.5
11.0
Person miles
traveled
88.1
7.5
2.3
2.1
Source: Liss, S., 1991, 1990 Nationwide Personal Transportation Study, Early Results, U.S. Department
ofTransportation , Federal Highway Administration.
Some 14 air carriers with annual
operating revenues exceeding $1 billion
operated during 1990. Among these
major air carriers, passenger revenues
were up 9 percent, compared with 1989,
but total operating expenses were up 16
percent. Thus, earnings were negative
for the year, compared with net income
of $276.5 million in 1989 (1 7).
Public transportation via bus (includes
public transit, intercity, shuttle buses­if
available to general public; excludes
school buses) and rail (includes subway,
elevated rail, commuter train, street car,
or trolley car) accounts for only a small
proportion-2 percent of person trips
and 2 percent of person miles. It is esti­mated
that between 40 and 45 percent
of motor bus travel is intercity (5). Of
all passenger trips made in 1989 on
public transit conveyances, 63 percent
were by motor bus; only 50 percent of
the passenger miles traveled via public
transit were by motor bus (2).
Remaining travel (11 percent of person
trips and 2 percent of person miles) was
done by other means (walking, school
bus, bicycle, taxi). Walking, biking, and
riding the school bus have declined as a
share of person trips over time, corre­sponding
to a decline in proportion of
the population under age 16--or greater
use of private vehicles (5).
20
Vehicle-Miles Traveled
and Vehicle Trips
From 1983 to 1990, annual vehicle
miles of travel increased by 41 percent
while the number of vehicle trips
increased by 25 percent. During this
period, there was an 11-percent increase
in the number of drivers, a 28-percent
increase in average annual miles per
driver (including a 50-percent increase
by women), and a 15-percent increase
in the number of vehicles owned or
available to households (5).
On a per household basis, average daily
vehicle miles of travel increased from
32 miles in 1983 to 41 miles in 1990.
Some of the increase in vehicle miles
traveled can be attributed to an in­creased
average work trip, from 8.6
miles in 1983 to 10.9 miles in 1990.
One-third of all vehicle miles traveled
were related to work. People were
moving farther out to the distant
suburbs, in large part because housing
was more affordable (5).
In 1990, 80 percent of all vehicle trips
were by automobile, down from 84
percent in 1983. Miles traveled by auto­mobile
were down similarly, from 82
percent in 1983 to 77 percent in 1990.
As a result, trips by trucks and vans in­creased
as did miles traveled by trucks
and vans during the period (5).
Household vehicle ownership increased
from 1.2 vehicles per household in 1969
to 1.8 in 1990. There were 1.7 drivers
per household in 1990 (5). Since 1972,
the number of registered vehicles in the
United States has exceeded the number
of licensed drivers (14). Of the U.S.
population 16 years old and older, 85
percent were licensed to drive in 1989;
over 90 percent of the population be­tween
ages 21 and 55 were licensed to
drive. Of all licensed drivers, 56 percent
were between ages 20 and 44 (table 2).
However, between 1979 and 1989, the
number of licensed drivers 70 years old
and older increased by 56 percent. A
majority of all drivers, 52 percent, were
male (13).
According to the U.S. Department of
Transportation (DOT), the average
number of vehicle-miles traveled annually
per passenger automobile has increased
only slightly since 1947. From 1972
to 1980, a downward trend could be
observed (figure 1), but from 1981 to
1988, average miles traveled per car
rose by 10 percent (1 1).
Table 2. Distribution of licensed
drivers, by age, 1989
Drivers as a
percent of
Percent of age group's
Age total drivers population
Total 100.0 85.0
<20 5.9 54.3
20-24 10.2 89.6
25-29 12.5 94.3
30-34 12.4 92.4
35-39 11.2 94.4
40-44 9.7 95.4
45-49 7.6 93.1
50-54 6.2 90.2
55-59 5.7 88.7
60-64 5.6 85.8
65-69 5.0 81.3
>69 8.0 63.9
Source: U.S. Department of Transportation ,
Federal Highway Administration, 1990, Highway
Statistics 1989.
Family Economics Review
Figure 1. Passenger car efficiency (1973 = 1 00)
160 .------------------------------------------.
140 . Mil.es per gallon / •. . . ..... .. .
-- -·
120
/
Miles traveled per car
100
80
Fuel consumed per car
1974 76 78 80 82 84 86 88 90
Source: U.S. Department of Energy, Energy Information Administration, 1992, Monthly Energy
Review, January issue.
Fuel Economy
In contrast, the annual average number
of gallons of fuel consumed per car has
been falling since 1972, while the average
miles traveled per gallon of fuel has
risen. After supply disruptions and esca­lating
prices in the 1970's, consumers
demanded fuel efficiency. The Federal
Government established the Corporate
Average Fuel Economy (CAFE) stan­dards
to promote conservation, reduce
pollution, and minimize dependence on
foreign oil (see box). In 1974, the speed
limit on all interstate highways was
reduced to 55 miles per hour (mph)
by the Federal Government to further
increase fuel economy. In 1987, States
were allowed to set speed limits as high
as 65 mph on rural segments of inter­state
highways (1 1). The interstate
system accounts for about l percent
of the Nation's total route mileage but
carries 22 percent of the travel (1 3 ).
Overall, efforts to increase automobile
fuel economy have been successful, as
can be seen by the following data for
1988 as compared with 1978 (11):
• Number of motor vehicles
registered in the United States­up
21 percent
• Number of vehicle-miles traveled­up
3 percent
• Per day demand for motor
gasoline--down 1 percent
Under CAFE, a fuel economy standard of 18 miles per gallon (mpg) was
established for the automakers' new fleet of cars in 1978 and 27.5 mpg in 1985.
Between 1978 and 1987, average mpg per passenger car (all U.S. manufacturers)
increased 37 percent. Reasons for this increase included a more aerodynamic
design, increased use of lighter materials (high grade steel, aluminum, and plastics
reinforced with fiber glass and graphite), redesigned four- and six-cylinder
engines that were more efficient than the old eight-cylinder engines, front-wheel
drive, five-speed manual and four-speed automatic transmissions, and computer­controlled
fuel injection systems. Other technological developments that will
improve fuel efficiency, soon to be incorporated in automobile design, are a new
computer system that regulates and continually adjusts valve timing and lift and
three- and five-cylinder engines to replace some four- and six-cylinder engines (11 ).
1992 Vol. 5 No.2
• Household vehicle
ownership increased
from 1.2 vehicles per
household in 1969 to
1.8 in 1990.
21
Expenditures and Prices
According to data from the 1990
Consumer Expenditure Survey, con­sumer
units were spending 18 percent
of their total expenditures for transporta­tion
expenses (figure 2) (12). Gasoline
and oil accounted for 4 percent of total
expenditures and vehicle purchases,
8 percent.
Prices for transportation, as measured
by the Consumer Price Index (CPI),
rose 21 percent during the period
1986-91. This increase was slightly
less than the 24-percent increase for all
items (figure 3). Prices for new vehicles
rose less since 1986 (14 percent) than
did those for motor fuel (29 percent)
and automobile maintenance and repair
(23 percent).
Since 1980, the annual cost of gasoline
and oil, as a percentage of variable costs
related to owning and operating an auto­mobile,
has declined from 77 percent to
68 percent (table 3, p. 24) (1 ,8). In con­trast,
maintenance costs have increased
from 15 to 23 percent of variable costs,
reflecting a trend toward older cars.
The average age of cars in use in the
United States was 5.6 years in 1970,
6.6 in 1980, and 7.6 in 1990 (8). The
distribution of passenger car age is
shown in figure 4.
Fixed costs of owning and operating an
automobile more than doubled between
1980 and 1991. As a percentage of
fixed costs, depreciation takes the
largest bite-60 percent. Both insurance
and finance charges account for a
decreasing share of fixed costs. Interest
rates charged by commercial banks
for new car financing have fluctuated
between 10 and 12 percent during 6 of
the last 8 years (figure 5).
There is a strong negative relationship
between the price of gasoline and con­sumer
demand. As gasoline prices went
down between 1974 and 1978, demand
increased and 13.4 percent more
22
Figure 2. Annual expenditures of all consumer units, Consumer
Expenditure Survey (CE), 1990
Food
15%
Apparel
Health care
Transportation
31%
9%
Housing
11%
Other
Pensions/
life insurance
Source: U.S. Department of Labor, Bureau of Labor Statistics, 1991, Consumer expenditures
in 1990, News, USDL No. 91·607.
Figure 3. Consumer Price Index for transportation, all urban
consumers (1982-84 = 100)
140.---------------------------------------------,
130
120 ·····.,..:...:·:.,.:.;- -- -
-- 110 --
100 .-·-.
90
.......
80 - --·
-·- ·-·-·
70LL------~--------L-------~-------L------~
1986 87 88 89 90 91
All items Transportation New vehicles
Motor fuel Maintenance and repairs
Source: U.S. Department of Labor, Bureau of Labor Statistics, CPI Detailed Report.
Family Economics Review
Figure 4. Distribution of passenger car age
1970 1980
[2 Under 3 years Ill 3 to 5 years
~ 9 to 11 years • 12 years and older
1989
~ 6 to 8 years
Source: Calculated from Statistical Abstract of the United States, 1991 .
Figure 5. Interest rates for new car financing
Percent
15 .-------------------------------------------,
10 ......... .
5 LL--__ _L ____ _L ____ _i ____ ~----~----~~----~
1984 86 88 90 91
1991 data are for November.
Source: Board of Governors of the Federal Reserve System, Federal Reserve Bulletin
(table 1.56).
1992 Vol. 5 No.2
gasoline was consumed. Between 1978
and 1981, prices rose and gasoline con­sumption
decreased by 11.1 percent.
The oil industry was deregulated in
1981, and prices dropped 47 percent by
1988. During this period, demand for
gasoline increased by 11 percent (1 1).
Highways and Mass Transit
Transportation accounts for about two­thirds
of U.S. petroleum use and of that,
over 70 percent is used in highway
travel. Highway travel is expected to
continue rising unless energy costs are
increased substantially-through addi­tional
taxes (1 0) or foreign restrictions
on supply.
Excise taxes on gasoline, gasohol,
diesel and special motor fuels, tires,
trucks and trailers, Federal use tax, and
fines and penalties support the Highway
Trust Fund (II ,14). Currently, the
Federal gasoline excise tax is 14.1 cents
per gallon, having increased by 5 cents
per gallon on December 1, 1990. Half
of this increase, however, is designated
for budget deficit reduction. One penny
of it supports mass transit, leaving
1.5 cents for the Highway Trust Fund.
The States' gasoline taxes range from
7.5 cents in Georgia to 21.0 cents in
Tennessee (1 1). Highway and mass
transit trust fund balances ($11 billion
and $8.5 billion, respectively, in 1991)
cannot be spent without being author­ized
and budgeted (10).
During the 1980's, most Federal spending
on highways (about 75 percent) was
allocated for new construction and
capital replacement (full or near full
replacement of a bridge, major
bridge rehabilitation, or highway
reconstruction). About 20 percent
23
•
24
... about one-third
of the Nation's
noninterstate roads
are deteriorated or
are deteriorating.
Also, almost half
of all bridges are
structurally deficient
or functionally
obsolete.
Table 3. Annual cost of owning and operating an automobile 1
Cost 1980 1985 1991
Total variable costs (cents per mile) 7.62 8.04 9.80
Percent
Gas and oil 77 77 68
Maintenance 15 15 23
Tires 8 8 9
Total fixed costs (dollars) $2,033 $2,441 $4,217
Percent
Depreciation 51 51 60
Insurance 24 21 17
Finance charges 21 23 19
License, registration 4 5 4
1Based on an intennediate-size car, driven 60,000 miles over a 4-year period.
Source: Calculated from U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract
of the United States, 1991 ; and American Automobile Association, Your Driving Costs, 1991 Edition.
was on maintenance (restoration,
rehabilitation, and resurfacing) to
prolong life and to avoid total capital
replacement. Remaining funds were
directed toward nonconstruction
efforts, such as safety {10).
The Office of Technology Assessment,
U.S. Congress, considered rehabilitation
and maintenance problems the top
priority for new highway funding. It
has been estimated that about one-third
of the Nation's noninterstate roads are
deteriorated or are deteriorating. Also,
almost half of all bridges are structurally
deficient or functionally obsolete.
American drivers face other hidden
costs-time, fuel lost, and air pollution­because
of highway congestion. Total
annual cost to the public has been esti­mated
at $30 billion. The problem is
nationwide and getting worse. The
Texas Transportation Institute has
developed a Roadway Congestion
Index that ranks cities by their conges­tion
level. In 1989, worst congestion
occurred in Los Angeles, San Francisco,
and Washington, D.C. Highest conges­tion
costS per vehicle was measured in
Washington, D.C., at $1,040. Several
cities reduced congestion levels
between 1987 and 1989, including
Phoenix, Philadelphia, Detroit,
Houston, and Atlanta.
5Congestion cost is toe estimated annual cost of
travel delay and excess fuel consumed paid by
residents of large, congested urban areas.
Family Economics Review
Highway Safety
Fatalities. Motor vehicle crashes are
the leading cause of death among
Americans under 35 years old. More
crashes occur in urban than rural areas,
but more motor vehicle deaths occur on
rural than on urban roads (4). In 1990,
the death rate was highest among males
16 to 24 years old and 80 years and
older. Over half (54 percent) of deaths
involved occupants of passenger cars;
19 percent involved pickups, vans,6 and
utility vehicles; 15 percent were pedes­trians;
and 7 percent were motorcyclists.
Since 1980, vehicular deaths have
trended downward except for those
involving occupants of pickups, vans,
and utility vehicles (table 4) (4). Also,
between 1975 and 1988, the fatality rate
(number of automobile occupants killed
per 100,000 automobiles registered) de­creased
from about 28 to about 21 (18);
the occupant death rate was higher (30
deaths per 100,000 registered vehicles I
to 3 years old in 1990) in small pickup
trucks and small utility vehicles than in
other types of passenger vehicles (4).
Improvements in automobile and road­way
design, the reduction in the propor­tion
of young drivers on the road (due
to changing age distribution of the popu­lation),
increased use of safety belts,
and a focus on the issue of drunk driving
all contributed to this decrease (1 8).
Sixty-seven percent of passenger vehicle
(cars, pickups, vans, utility vehicles)
fatalities in 1990 were drivers. More
than half (55 percent) of passenger
vehicle occupant deaths occurred on
Friday, Saturday, or Sunday, and 54
percent occurred in crashes between
6 p.m. and 6 a.m. (4).
6Minivans were classified as cars.
1992 Vol. 5 No.2
Table 4. Motor vehicle deaths, 1980 and 1990
Victim 1980 1990
Occupants
Passenger cars 1 27,390 24,243
Pickups, vans, utility vehicles 7,578 8,452
Tractor trailers 884 506
Other heavy trucks 354 180
Motorcyclists 4,961 3,120
Bicyclists 965 850
Pedestrians 8,070 6,468
Other 889 710
1Minivans are classified as cars.
Source: Insurance lnstitwe for Highway Safety, /991 , Facts, 1991 Edition.
In 1990, the death rate in the smallest passenger cars (wheelbase less than 95
inches) was more than 4 times that in the largest cars (wheelbase greater than
114 inches) (4). Efforts to increase fuel economy standards have renewed the
debate concerning the relationship between auto size and safety.
Although downsizing could refer to reductions in length and width as well as
weight, fuel efficiency is most closely related to weight, according to a study
conducted by the General Accounting Office (18). Crashworthiness is more
directly related to exterior size--wheelbase and crush space-and safety
features than it is to weight.
Heavier cars are more "aggressive"; that is, they hit a fixed object or another
vehicle with more force than would a lighter one. Median weight of passenger
cars in the United States decreased by about 28 percent (1,100 pounds) between
1975 anj 1988. During this period, the range of automobile weights decreased
significantly: the difference in weights of cars in the 95th and 5th percentiles
was over 3,000 pounds in 1975 and under 2,000 pounds in 1988. Thus, the
"aggressivity" factor has declined since 1975.
A comparison of 1- and 2-year-old cars on the road in 1976-78 and 1986-88
shows that 66 percent of all cars weighed 3,000 pounds or less in 1986-88,
compared with only 28 percent in 1976-78. For cars weighing 3,000 pounds
or less, the fatality rate decreased from about 35 to about 24.
The General Accounting Office study concluded that automobile downsizing
has two offsetting effects: crash worthiness is reduced, but so is "aggressivity."
An increase in the proportion of lighter cars would lead to a decrease in occu­pant
fatalities in two-car accidents; in collisions involving automobiles with
trucks and heavier vehicles, however, occupant fatalities would increase.
Between 1976-78 and 1986-88, the death rate for two-car collisions declined
22 percent, whereas the death rate for all other multivehicle accidents increased
about 11 percent.
25
Child Restraints. All States and the
District of Columbia have laws requiring
children to be restrained when traveling
in passenger vehicles. Restraints may
be infant carriers, special safety seats,
or regular adult safety belts. In 16 States,
laws cover only vehicles registered in
the State. In other States, laws apply
only to residents of the State or to
parents and guardians (4).
Safety Belts. As of June 1991, 39 States
and the District of Columbia have passed
laws mandating the use of seatbelts.
Most of those States (34) require front­seat
occupants of all passenger vehicles
to wear safety belts; only 6 States also
require passengers in rear seats to be
belted. In 9 States, police may issue
tickets solely for not wearing seatbelts;
in 30 States and the District of Columbia,
motorists must have committed a
moving violation before they may be
cited for not wearing seatbelts (4).
Recent Legislation
The 1990 Clean Air Act mandated
reductions in car- and truck-generated
pollutants. Technologies funded by the
Federal Highway Administration and
the Strategic Highway Research Program
are expected to alleviate congestion
and highway delays. For example, auto­matic
vehicle identification will speed
toll collection (see box, p. 27). Other
research is being conducted on high­speed
rail and magnetic levitation
systems for intercity travel. However,
Federal support for transit research and
development dropped from $52 million
to $2 million annually between 1980
and 1991. The Urban Mass Transporta­tion
Administration (DOT) has devel­oped
a Transit Planning and Research
Program that includes Federal, State,
and local components (10).
26
The 6-Year Intermodal Surface Trans­portation
Efficiency Act of 1991
(Public Law 102-240)-a $151 billion
bill approved by Congress on November
27, 1991, and signed by President Bush
on December 18, 1991-is expected
to generate much-needed economic
activity. Almost $20 billion is slated
for highway and bridge construction
and repair each year, an annual increase
of $5.3 billion over the previous Federal
allocation.
Also expected to benefit are manufacturers
of automobile air bags. One provision
of the law requires the installation of air
bags for the driver and the front seat
passenger in all passenger vehicles,
including trucks, sold in the United States
by 1999.
Other provisions of the law would
promote the development of "smart"
highway systems, designed to use
electronics to ease traffic congestion
by controlling road access (see box)
or rerouting vehicles to less congested
highways via electronic maps. Private
investors could provide the communica­tions
network along a road that would
inform drivers about traffic conditions
and available mass transit. Mass transit
was proposed to be funded at an average
annual level of $5.25 billion, and will
account for 21 percent of total appropri­ations
authorized by this bill, compared
with 18 percent under the previous law
(9).
Federal Rules and Regulations
Affecting Transportation
The Omnibus Budget Reconciliation
Act of 1990 (Public Law 101-508)
doubled the Gas Guzzler Tax applicable
to sales of automobiles by a manufacturer
after December 31, 1990. Throughout
1991, up to December 27, the amount
stated on the label was doubled, thereby
avoiding the need to replace labels.
Effective December 27, 1991, the state­ment
required by the Environmental
Protection Agency on motor vehicle
fuel economy labels (called the Gas
Guzzler Tax statement) must reflect this
increase.
The Internal Revenue Service collects
the tax, which is assessed on the sale of
each passenger automobile with a fuel
economy of less than 22.5 mpg. The tax
increases as mpg decreases (3).
The Federal Motor Vehicle Safety
Standard for controls and displays has
long required the identification of
certain controls and displays to be per­ceptually
upright to the driver so they
may be quickly and correctly identified
and selected with minimal diversion of
the driver's attention from the driving
task. Because some manufacturers have
placed cruise controls on steering
wheels, the National Highway Traffic
Safety Administration (NHTSA) consid­ered
whether there was a safety need to
prohibit such placement. NHTSA con­cluded
that, effective November 15,
1991, identification of cruise controls
need be perceptually upright only when
the steering wheel is centered (15).
Family Economics Review
On December 5, 1991, AT&Tand
Vapor Canada, Inc., of Montreal
announced a new "smart card" that
can enable drivers to pay their tolls
electronically and almost instantly.
The card is inserted in a device
mounted on the car's dashboard that
can read the information stored on
the card. Data are transmitted via
radio frequency to a roadside data
collector. After the correct toll is
computed, the transaction is recorded
on the card. The toll can be billed to
a credit card or deducted from a cash
account. The card (about the size of
a credit card) contains a single micro­processor
and can store four single­spaced
pages of data. Information
such as a user's medications, allergies,
medical insurance, and automobile
insurance could be listed. A password
is provided to each user, so data are
secure. Highway, bridge, and tunnel
authorities have indicated a high
degree of interest, especially for
heavily traveled roads where benefits
would be maximized (7).
In April 1992, Lockheed Corporation
and AT&T announced a new telecom­munications
system that will speed
collection of tolls, fuel taxes, and
other fees. This Intelligent Highway
Vehicle System is designed to boost
truckers' prpductivity and cut air
pollution (6).
1992 Vol. 5 No.2
References
1. American Automobile Association. 1991. Your Driving Costs.
2. American Public Transit Association. 1990. Transit Fact Book.
3. Environmental Protection Agency. 1991. Revise gas guzzler tax statement on
fuel economy level. Federal Register 56(208):55464-55466.
4. Insurance Institute for Highway Safety. 1991. Facts, 1991 Edition.
5. Liss, S. 1991.1990 Nationwide Personal Transportation Study, Early Results.
U.S. Department of Transportation, Federal Highway Administration.
6. Seideman, T. 1992. Venture seeks to speed highway fee collections. The
Washington Post, April 14 issue.
7. Skrzycki, C. 1991. AT&T, partner say toll-taking is in the cards. The Washington
Post, December 6 issue.
8. U.S. Department of Commerce, Bureau of the Census. 1991. Statistical Abstract
of the United States, 1991. [lllth ed.]
9. U.S. Congress. 1991. Public Law 102-240, lntermodal Surface Transportation
Efficiency Act of 1991. 102nd Congress.
10. , Office of Technology Assessment. 1991. Moving Ahead:
1991 Surface Transportation Legislation. OT A-SET -496.
11. U.S. Department of Energy, Energy Information Administration. 1991. The
Motor Gasoline Industry: Past, Present, and Future.
12. U.S. Department of Labor, Bureau of Labor Statistics. 1991. Consumer
expenditures in 1990. News. USDL No. 91-607.
13. U.S. Department of Transportation, Federal Highway Administration. 1991.
Selected l!ighway Statistics and Charts 1989.
14. ______ . 1990. Highway Statistics 1989.
15. , National Highway Traffic Safety Administration. 1991.
Federal motor vehicle safety standards; controls and displays. Federal Register
56(200):51845-51848.
16. , Research and Special Programs Administration. 1991.
Air Carrier Traffic Statistics Monthly.
17. ______ . 1991. Air Carrier Financial Statistics Quarterly.
18. U.S. General Accounting Office. 1991. Highway Safety: Have Automobile
Weight Reductions Increased Highway Fatalities?
27
28
Research Summaries • Child-Care
Arrangements
and Costs
Changing employment and demographic
patterns of women have made child
care an important public policy issue in
the United States. Between 1970 and
1990, the percentage of mothers in the
labor force with children under age 6
has doubled (from 29 percent to 58
percent).
Also, the composition of families has
changed significantly. Among families
with children, those headed by women
increased from 11 percent in 1970 to
16 percent in 1988. Two reasons for
this increase are a rise in the percentage
of divorced women age 18 and older
who had not remarried ( 4 percent in
1970; 9 percent in 1988) and an in­crease
in frequency of births to unwed
mothers (11 percent of total births in
1970; 25 percent in 1987).
These social changes have led to an
expanded role for the government in
subsidizing child care. In 1988, the
Federal Government spent an estimated
$7 billion on child-care assistance
programs. The 1990 Child-Care and
Development Block Grant has expanded
the role of both State and Federal
Governments in the provision of child
care.
This report focuses on factors that
determine the type of child-care arrange­ments
and expenditures by different
population groups. The data are from
the 1988 National Longitudinal Survey
of Youth (Youth Survey) and the 1983
National Longitudinal Survey of Young
Women (Young Women Survey). The
Youth Survey consisted of mothers ages
23 to 31 in 1988 (younger mothers),
whereas mothers in the Young Women
Survey were 29 to 39 years old in 1983
(older mothers).
Usually, children are cared for in one
of three types of arrangements: by rela­tives,
by other persons, or in child-care
centers. The most common form of
child care is provided by relatives: 41
percent of children with a working
mother received such care. Almost
one-fourth of the mothers relied on per­sons
other than relatives for child care
(see table). This type of arrangement
includes care in the home as well as in
other private homes. Child-care centers
(day-care center or nursery school)
were used by 18 percent of younger
mothers in 1988 and 11 percent of older
mothers in 1983.
The type of child-care arrangement was
greatly influenced by the age of the
youngest child. Child-care centers were
used more often for 2- to 4-year-old
children than for infants by both younger
and older mothers. Other persons, how­ever,
were more likely to provide care
for infants than for children 2 to 4 years
old. This difference in type of care may
be related to parental preference and to
the fact that many child-care centers
do not accept children under age 3, or
accept them only at a higher fee.
Older mothers were more likely to have
people other than relatives care for their
infants (58 percent compared with 33
percent for younger mothers), whereas
younger mothers were more likely to
use child-care centers for their infants
(15 percent compared with 4 percent for
older mothers).
Older mothers may have older children
able to care for siblings age 5 and older
(reported by 11 percent compared with
2 percent for younger mothers). Also,
since children of older mothers are
older and may be in school, they are
more likely than children of younger
mothers to care for themselves
(32 percent compared with 5 percent).
Family Economics Review
Child-care arrangement for youngest children of women in the 1988 and 1983 National Longitudinal Surveys,
by age of child
Younger mothers (ages 23-31)1 Older mothers (ages 29-39)2
Age of children (years) Age of children (years)
Caregiver All children <2 2,3,4 5+ All children <2 2, 3,4 5+
Percent Percent
Father 11.3 12.8 12.2 9.4 14.1 15.6 16.1 13.5
Siblings 1.1 0 .6 2.3 8.8 .8 2.7 10.8
Other relative 28.8 30.0 26.1 30.3 18.0 29.7 15.9 15.9
Other person 22.3 32.8 24.5 13.0 24.0 58.2 43.7 17.2
Child-care center 18.1 15.1 27.6 10.7 10.6 3.7 22.6 7.7
Mother cares for child at work 3.0 3.2 3.5 2.4 4.2 8.6 8.3 3.0
Child cares for self 1.9 0 0 5.2 24.6 0 .1 32.3
Other 13.5 6.0 5.6 26.5 12.1 0 2.0 15.3
1Data are from the 1988 National Longitudinal Survey of Youth; percentages may not add to I 00 percent due to rounding.
2Data are from the 1983 National Longitudinal Survey of Young Women. In the survey, respondents were allowed to choose more than one type of
arrangement. Thus, percentages total more than I 00 percent.
Source: Veum, J.R . and Gleason, P.M., 1991 , Child care: Arrangements and costs, Monthly Labor Review 114( 10):10-17.
A higher percentage of older married
mothers (18 percent) received child­care
help from the child's father than
did younger married mothers (15
percent). Among single mothers, how­ever,
the younger mothers depended on
the child's father to provide care more
than did older mothers. Children of
younger single mothers are most often
cared for by relatives (38 percent) or
child-care centers (20 percent). In
contrast, older single mothers tended
to rely more on relatives (25 percent)
or let the children care for themselves
(35 percent).
Family income is also a factor in deter­mining
the type of child care. Mothers
in families with income over $50,000
(in 1988 dollars) were less likely than
those in lower income families to have
their children cared for by relatives.
Older mothers were more likely to use
child-care centers as family income
increased. Among those families using
child-care centers, high-income families
tended to use private child-care centers,
1992 Vol. 5 No.2
whereas low-income families were
more Likely to use public centers.
Average weekly expenditures on child
care were about $44 for older mothers
and $62 for younger mothers (in 1988
dollars). However, younger mothers
used child-care services an average of
39 hours a week, compared with 25 for
older mothers, so hourly expenditures
were larger for older mothers. Older
mothers generally have higher incomes
than younger mothers, and they often
have more children for whom to pay
the costs of child care-which may
result in higher expenditures than those
incurred by younger mothers.
Single mothers spent less than married
mothers on child care. This difference
in expenditures may be attributed to
the type of arrangement used. Single
mothers relied more on relatives,
who generally provide a relatively in­expensive
form of child care. For both
married and single mothers, it appears
that those with net family incomes of
$50,000 or more used child care for
more hours than did mothers with lower
family incomes. There appears to be a
direct relationship between the income
levelof a family and their child-care
expenditures for both younger and
older mothers.
The suggestion is often made that inade­quate
child-care provisions may hinder
the careers of women with children.
Evidence for older mothers suggests
that those in high-income families are
more likely to take time off from work
to handle child-care problems. These
women are often married and (with
their husband 's income) can better
afford time off from work. Findings
from the Youth Survey imply that
mothers in low-income families are
more likely to have gaps in employment
because they cannot find adequate
child-care arrangements.
Source: Veum, J.R. and Gleason, P.M. , 1991,
Child care: arrangements and costs, Monthly
Labor Review 114{10):10-17.
29
•
Child-Care
Problems: An
Obstacle to Work
Currently, only one of three mothers
stays at home and provides full-time
care for her children. About half of all
preschoolers spend at least part of the
day in the care of adults other than their
parents. This increase in working
mothers has been accompanied by an
increase in the number of day-care
centers and other forms of nonparental
care for children. Finding affordable,
quality child care, however, can be a
problem for many families. For poor
mothers, lack of child care can be a
serious obstacle to obtaining and
holding a job, often compounding the
economic effects of inadequate training,
educational attainment, and work
experience.
In 1990, Congress enacted legislation
intended to make child care affordable
for more parents. Poor single parents
who are not employed may receive
temporary child-care assistance during
periods of subsidized job training and
the transitional periods that follow.
This legislation recognizes that the Jack
of affordable child care is a serious
barrier to the labor force participation
of many parents, especially those who
are poor.
Most child-care research conducted in
recent years has concentrated on the
child-care needs of parents who are
employed. Some analysts have suggested
that parents who are not employed are
unlikely to need child care. Others found
that child-care costs had a substantial
effect on labor force participation.
Supplements to the Current Population
Surveys of 1977 and 1982 asked non­employed
mothers whether they would
work "if satisfactory child care were
available at reasonable cost." Such
30
Table 1. Mothers, 21 to 29 years old, who cited child-care problems,
by selected characteristics, 1986
Selected characteristics
Total
Age (years)
21-24
25-29
Race or Hispanic origin
Non-Hispanic White
Non-Hispanic Black
Hispanic
Age of you~gest child (years)
Less than I
1 - 2
3- 5
6 or older
Total number of children
One
Two
Three or more
Poverty status 1
At or below poverty line
Above poverty line
Marital status
Single parent
Married, spouse present
Educational attainment2
No high school diploma
High school graduate
As a percent of all
mothers not in the
labor force
23.5
24.2
23.1
19.9
29.0
40.6
17.4
28.2
25.8
13.5
20.3
22.4
31.8
34.0
18.4
30.3
20.2
32.2
20.5
1Data refer to people who provided complete information regarding family income.
2Data refer to people who provided complete information regarding educational attainment.
phrasing may encourage respondents
to overestimate their readiness to seek
employment. If mothers are asked an
open-ended question as to why they are
not looking for work, they are more
likely to express their own reasons.
This approach was used in this study.
This study focused on young mothers
who were out of the labor force for at
least part of 1986. The data are derived
from the National Longitudinal Survey
of Youth, an ongoing sample of people
in the United States who represent the
population of youth born between 1957
Family Economics Review
Table 2. Mothers, 21 to 29 years old, who cited child-care problems,
by poverty status and number of children, 1986
Number of children
One
Two
Three or more
and 1964. When weighted, the population
subgroup used in this report included
about 8.2 million young mothers, ages 21
to29.
In 1986, 43 percent of these young
mothers were in the labor force continu­ously,
and 30 percent were employed
for part of the year. Of those who were
not in the labor force continuously,
24 percent said the reason was because
of child-care problems. Women with
child-care problems were more likely
than other women (66 percent compared
with 42 percent) to be out of the labor
force in 1986.
Child-care problems were more preva­lent
among women with three or more
children and for those whose youngest
children were between ages 1 and 5
(table 1). Minority mothers-particu­larly
Hispanics-were more likely than
other mothers to be out of the labor
force because of child-care problems.
Among mothers who lacked high
school diplomas and were out of the
labor force, one-third cited child-care
problems.
The proportion of poor mothers citing
child-care problems was almost twice
as high as that of their nonpoor counter­parts.
This difference reflects the fact
that poor mothers tended to have more
children than other mothers. One-third
of all poor mothers who were out of the
1992 Vol. 5 No.2
As a percent of
mothers not in the labor force
At or below Above
poverty line poverty line
29.5 16.4
35.2 17.8
36.5 25.6
labor force had three or more chiidren,
compared with about one-sixth of their
nonpoor counterparts. Even among
women who had one or two children,
poor mothers were much more likely to
be out of the labor force because of
child-care problems (table 2).
The cost of child care is probably a
major reason why poor mothers were
more likely than other mothers to be out
of the labor force because of child-care
problems. Paying for child care is not a
realistic long-term option for most poor
mothers. Among those mothers who
paid for child care, were employed in
1986, and were never out of the labor
force because of child-care problems,
poor mothers paid 26 percent of their
weekly family income for child-care
expenditnes, whereas their non poor
counterparts paid, on average, 8 percent.
Poor mothers may be unable to pay for
child care in order to look for work.
They often have lower levels of educa­tion
and marketable skills and so have
fewer chances of getting jobs that pay
enough to cover child-care payments.
Poor mothers tend to be in a "catch-22"
situation: without child care, they can­not
look for work and without work,
they cannot pay for child care.
Source: Canan, P., 1991 , Child-care problems:
An obstacle to work, Monthly Labor Review
114{10):3-9.
31
•
Per Capita Food
Spending in
Urban Households
Between 1980 and 1988, inflation­adjusted
(real) per capita spending for
food at home declined by more than
6 percent. In contrast, real per capita
away-from-home food spending
increased by more than 10 percent.
The net result was a small decrease in
total per capita food spending during
the period.
Changes in food spending between
1980 and 1988 varied by family size.
After adjusting for inflation, total food
spending grew by 11 percent for single
people, while spending declined by 17
percent for households with six or more
members. In 1988, per person weekly
food expenditures ranged from $36.73
for single people to $15.83 for those in
households with six or more members
(see table). Household food spending
increases with household size, but not
proportionately because large house­holds
can take advantage of economies
of size (buying in bulk), tend to have
more children (who eat smaller por­tions),
and tend to buy a different mix
of food.
Food expenditures are affected by
household income. Households in the
lowest income quintile in 1988 spent
$19.50 per person per week, 62 percent
as much as the $31.50 spent by house­holds
in the highest income quintile.
Food spending also varied by race and
age. In 1988, White households spent
$27.03 per person per week and Black
households spent $17.89, or two-thirds
as much. Contributing factors were
smaller family size and higher family
income among Whites. Other groups­including
American Indians, Eskimos,
and Asians-spent 18 percent less than
32
Weekly per-person food expenditures
Item 1980 1988
All urban households 25.80 25.68
Number of household members
One 33.22 36.73
Two 31.30 31.59
Three 24.92 25.48
Four 23.33 22.47
Five 21.70 19.23
Six or more 19.03 15.83
Single female parent with children 16.96 17.65
Income groups
Poorest 20 percent 22.45 19.50
Second-poorest 20 percent 24.26 22.67
Middle 20 percent 24.71 25.19
Second-richest 20 percent 28.74 28.31
Richest 20 percent 30.66 31.50
Race
White 26.99 27.03
Black 18.10 17.89
Other1 24.07 22.11
Age of household head (years)
Under 25 (nonstudent) 23.63 21.99
25 to 34 25.22 23.82
35 to 44 24.11 24.62
45 to 54 26.61 28.06
55 to 64 29.30 28.98
Over 64 27.38 27.26
Region and city size MSA 's2 in the
Northeast 27.28 28.04
Midwest 26.19 25.23
South 24.19 24.86
West 26.27 26.17
Other urban areas 24.60 23.10
1Includes American Indians, Aleuts, Eskimos, Asians, and Pacific Islanders.
2Metropolitan Statistical Areas (MSA's) are, except in New England, a county or a group of contiguous
counties that contain at least one city of 50,000 or more inhabitants. In New England, MSA 's consist of
towns or cities.
Source: Blaylock, J.R., Smallwood, D.M .. and Blisard, N.,J99J , Per capita food spending, Food Review
14(3):28-33, U.S. Department of Agriculture, Economic Research Service.
Family Economics Review
•
Whites but 24 percent more than
Blacks. In terms of age, per capita
spending for food tends to increase as
the household head ages, until retire­ment
age. This increase parallels the
income increase associated with rising
age.
In 1988, urban households in the
Northeast and West spent more per
person on food than households in the
South or Midwest. Those in the North­east
spent the most ($28.04) and those
in the South, the least ($24.86). These
differences may be caused by regional
variations in food prices, differences· in
household incomes, and purchases of
a different mix of food.
Foods that showed the most rapid growth
in real at-home spending between 1980
and 1988 were: cereals, up 24 percent;
breads (other than white), up 45 percent;
fresh milk (other than whole), up 53
percent; bananas and frozen prepared
foods, both up 37 percent; carbonated
drinks, up 30 percent; and potato chips,
snacks, and nuts, up 36 percent. Foods
with the biggest declines included white
bread, beef and pork products, fresh
whole milk, oranges, lettuce, and butter.
At-home expenditures on alcoholic
beverages also decreased significantly.
Source: Blaylock, J .R., Smallwood, D.M., and
Blisard, N ., 1991, Per capita food spending,
Food Review 14(3):28-33, U.S. Department of
Agriculture, Economic Research Service.
1992 Vol. 5 No.2
•
Food Spending
Food spending, as a percentage of
income, rose slightly in 1990. Much of
the growth in food spending occurred
because people were eating outside the
home more. Increasing numbers of
households have more than one earner.
These households generally have more
income and less time than single-earner
households and therefore eat out more
often.
After adjusting for inflation, however,
total overall food sales rose only 0.3
percent between 1989 and 1990. A
2.1-percent increase in real spending
for food away from home was offset by
a 1.1-percent decline in real spending
for food at home.
Individuals and families provided $444
billion of the $546 billion (81 percent)
spent on food in 1990. The Federal
Government spent $25 billion on food
stamps, food donations, food supplies
for the Armed Forces, and meals for
prisoners in Federal institutions. State
and local governments spent another $5
billion, and businesses spent $64 billion
for meals on business trips and food
furnished to employees in restaurants.
The value of food produced at home
totaled $9 billion.
Between 1989 and 1990, American
individuals and families increased their
food spending by 6.2 percent. During
the same period, incomes rose 5.9 per­cent,
away-from-home food spending
increased 7.8 percent, and at-home food
spending rose 5.2 percent.
In 1965, 23 percent of personal food
expenditures went for food away from
home. By 1990, that figure increased
to 39 percent. Over time, the share of
disposable personal income (income
after taxes) allocated to food spending
has decreased from 15.3 percent in
1965 to 11.8 percent in 1990 (see table).
As household income increases, the
amount spent for food also increases.
However, the proportion of income
spent on food is much higher in low­income
households. Households in the
lowest income quintile spent 42 percent
of their before-tax income on food,
compared with 9 percent for households
in the highest income quintile.
Source: Manchester, A., 1991, Food spending,
Food Review 14(3):24-27, U.S. Department of
Agriculture, Economic Research Service.
Personal food expenditures as a percentage of disposable personal
income
Component
Disposable personal income
Food
At home
A way from home
1965
486.8
15.3
11.8
3.5
1975 1985 1990
Billion dollars
1,142.8 2,838.7 3,946.1
Percent
14.1 12.6 11.8
10.1 8.0 7.3
4.0 4.5 4.6
Sources: Bureau of Economic Analysis, U.S. Department of Commerce and Economic Research Service,
U.S. Department of Agriculture.
33
34
Regular Items •
Charts From Federal Data Sources
Population by region and age, 1989
20.2% 18.3%
21 .2% 22.4%
34.5% 34.3%
Under age 65 Age 65 and over
D South E:::l Midwest D West D Northeast
Distribution of net worth in households headed by a person
age 65 and over, 1988
Equity in
own home
Savings and
checking accounts
30%
Financial investments 1
40%
11ncludes stocks and mutual fund shares, U.S. savings bonds, IRA and KEOGH accounts.
Source: Aging America: Trends and Projections, 1991 Edition. Prepared by the U.S. Senate
Special Committee on Aging, the American Association of Retired Persons, the Federal Council
on the Aging, and the U.S. Administration on Aging.
Family Economics Review
Labor force participants, age 55 and over, by sex
Men
1950 1989 2000 (projected)
Housing tenure in households headed by a person age 65 and over, 1989
Percent
Total I 76 - Ages 65-74 79
75 and over 69
Men 83
Women I 65
Live alone 62
Live with spouse I 88
Own Rent
Source: Aging America: Trends and Projections, 1991 Edition. Prepared by the U.S. Senate Special Committee on Aging, the American
Association of Retired Persons, the Federal Council on the Aging, and the U.S. Administration on Aging.
1992 Vol . 5 No. 2 35
•
Recent Legislation Affecting Families
Public Law 102-233 (enacted
December 12, 1991)-authorizes up to
$25 billion in additional funding for the
Resolution Trust Corporation (RTC) to
provide for the resolution of failed
savings and loan associations and for
working capital. The law also contains
provisions that:
• Promote the ability of banks and
thrifts owned by minorities and
women to buy failed or failing
institutions from the RTC.
• Permit the RTC to lease branch
offices of failed or failing thrifts in
minority neighborhoods rent-free to
banks or thrifts owned by minorities
and women.
• Broaden an existing affordable
housing program operated by the
RTC to include single-family and
multifamily housing held by thrifts
that are open and operating under an
RTC conservatorship.
The amount authorized is less than
one-third of the $80 billion that the
administration said it needs to conclude
the salvage operation.
Public Law 102-234 (enacted
December 12, 1991)-the Medicaid
contribution and tax law limits the way
States may raise funds to pay for their
share of the joint Federal-State health
program for the poor. Currently the
Federal Government pays about 55
percent of the program 's total costs.
Wealthier States contribute 50 percent,
whereas poorer States put in as little
as 20 percent of their costs. The law
prohibits, beginning January 1, 1992,
Federal matching payments for funds
raised through donations from health­care
providers, such as hospitals and
nursing homes, with some exceptions:
36
• States with donation programs already
in effect or that had formally planned
and submitted documents to the
Federal Government regarding such
programs by September 30, 1991,
could continue, for a time, to receive
donations.
• Funds donated to maintain on-site
workers to determine patients'
Medicaid eligibility. Beginning
October 1, 1992, these funds may not
exceed 10 percent of the State's total
administrative expenditures, including
both State and Federal funds.
• Donations that have "no direct or
indirect relationship" to Medicaid
payments made to any specific
provider.
The law requires that in order to receive
Federal matching payments, funds
raised through taxes on health-care
providers must result from taxes applied
uniformly to all providers in a particular
class, such as all physician services or
all outpatient hospital services.
Beginning October 1, 1992, the law
limits the total amount of payments
States may make to hospitals that serve
a higher than average number of low­income
patients. The law also specifies
that States may obtain Federal matching
funds when their Medicaid agencies
receive funds or services from local or
other State government agencies, pro­vided
these intergovernmental transfers
had been originally obtained through
allowable donations or taxes.
Public Law 102-240 (enacted
December 18, 1991)-the Intermodal
Surface Transportation Efficiency Act
of 1991 authorizes funds for the con­struction
of highways and highway
safety programs, $119.5 billion, and
mass transit programs, $31.5 billion.
The 6-year, $151 billion appropriation
is financed, in part, by extending
through fiscal 1999 half of the nickel
gasoline tax increase (effective
December 1, 1990) that had been set
to expire after fiscal 1995.
Public Law 102-244 (enacted
February 7, 1992)-authorizes an
extension of unemployment benefits for
the long-term unemployed, the second
extension in 3 months. The law would
offer an additional 13 weeks of compen­sation
for the unemployed who exhaust
their 26 weeks of State benefits and the
13 to 20 weeks of extended Federal
benefits enacted in 1991. Altogether,
jobless workers could receive either 52
or 59 weeks of benefits, depending on
the severity of the unemployment in
their State. The cost of the new exten­sion,
$2.7 billion, would be offset by
using revenues generated through
legislation enacted as of January 3,
1992, that exceeded pay-as-you-go
requirements and by accelerating the
collection of estimated taxes from large
corporations.
Family Economics Review
• Current Regional Research Project
W -153. Economic and
Behavioral Factors
Associated With Food
Supplement Usage
Administrative adviser:
Dr. H.F. McHugh
Colorado State University
Fort Collins, CO 80523
Cooperating States (Universities):
University of California-Berkeley,
University of California-Davis,
University of Idaho, University of
Nevada, New Mexico State University,
Oregon State University, University of
Wyoming.
Project dates: October 1984 to
September 1990
Objectives: To identify attitudes and
economic factors that result in the use
of food supplements. To determine
whether a relationship exists between
health attitudes and intentions and
actual vitamin/mineral supplementation
behavior. To identify factors that result
in the use of vitamin/mineral supplements
under various economic determinants.
To identify factors that result in cyclical
use of vitamin/mineral supplements.
Approach: Adults, chosen randomly
from telephone directories, were sent
questionnaires requesting information
on vitamin/mineral supplement prac­tices,
health beliefs, demographic
characteristics, and physiological status.
Half were addressed to men and half to
women. Followup interviews were
conducted by telephone at 9- and 18-
month intervals to ascertain cyclic
indicators and relevant longitudinal
data. Multivariate statistical procedures
were used to determine differences
between users and nonusers with
regard to attitudes, intentions, and
demographic characteristics.
1992 Vol. 5 No.2
Progress: Mail questionnaires were
returned by 1,730 respondents. After
9- and 18-month intervals, telephone
interviews were completed. Data from
the initial mail survey and the two
phone surveys were coded and merged
in order to study longitudinal trends.
All data were analyzed at New Mexico
State University.
Findings: Respondents described their
use of supplements as "regular"- 42
percent; "occasional"- 35 percent; and
"never"- 18 percent. Of regular users,
63 percent were women. The number
of regular users tended to increase with
age. Use ranged from 1 supplement
(33 percent of users) to 16 (0.1 percent)
supplements daily. Multivitamins were
taken most frequently; then vitamin C,
calcium, vitamin E, and vitamin A.
Many vitamin C and vitamin E users
indicated dosages known to be
excessive, suggesting a potential
for toxicity.
Cost of supplements had minimal
impact on their use. Nonusers self-rated
their health status as "excellent" more
frequently than users. Therefore, users
may be taking supplements as a way to
improve their health. Cyclical usage
patterns v'ere observed, suggesting
perceived health benefits may vary. Of
those using supplements at some point,
53 percent switched between user and
nonuser status during the three phases
of the study.
Information relevant to supplement
usage was obtained by the respondents
from a wide variety of sources, with
mass media mentioned more often than
nutritionists or dietitians. This finding
has implications for nutrition education.
Publications:
Medeiros, D.M., et al. 1989. Vitamin
and mineral supplementation practices
of adults in seven western States.
Journal of the American Dietetic
Association 89(3):383-386.
Raab, C.A., eta!. 1989. Targeting
messages to supplement users. Journal
of the American Dietetic Association
89(4):545-546.
Read, M.H., et al. 1989. Health beliefs
and supplement use: Adults in seven
western States. Journal of the American
Dietetic Association 89(12): 1812-1813.
Sheehan, E.T., et al. 1989. Vitamin and
food supplement practices and nutrition
beliefs of the elderly in seven western
States. Nutrition Research 89(9):251-
258.
37
•
Data Sources
National Personal
Transportation Study
(NPTS)
Sponsoring agency: U.S. Department
of Transportation
Population covered: U.S. households
and individuals in those households
who are 5 years and older
Sample size: Variable-15,000 (1969);
18,000 (1977); 6,500 (1983); and
22,000 ( 1990) households
Geographic distribution: Nationwide
Years data collected: 1969, 1977,
1983, 1990
Panel Study of Income
Dynamics (PSID)
Sponsoring agency: U.S. Department
of Health and Human Services and the
National Science Foundation
Population covered: U.S. individuals
and families with an over-sampling of
low-income households plus, in 1990,
an over-sampling of Latino (Mexican,
Cuban, and Puerto Rican) households.
Sample size: In 1968, 4,800 households
with about 18,000 individuals who were
followed over time. In 1989, there were
about 7,000 households and 38,500
individuals.
Geographic distribution: Coterminous
United States
38
Method of data collection: Personal
interviews untill990 when telephone
interviews were conducted.
Future surveys planned: About every
7 years
Major variables: Household character­istics;
household vehicle ownership;
drivers; average annual vehicle miles
per driver; vehicle trip length; vehicle
occupancy; private vehicle trips;
purpose of trip; time and duration of
trip; mode of transportation-private
vehicle, public transit (bus, rail, train,
streetcar, subway), airplane, taxi,
bicycle, Amtrak, school ~ms, walking.
Years data collected: Annually since
1968
Method of data collection: Telephone
interviews; personal interviews when
the telephone cannot be used.
Future surveys planned: Annually
Major variables: Income sources and
amounts; poverty status; public assis­tance
in the form of food or housing;
estimated Federal taxes; family
structure and demographic measures;
employment information; housework
time; housing; geographic mobility;
socioeconomic background; health,
religion, military service; and county
level data. Intermittent survey topics
include child care, savings behavior
(1984-89), wealth, and disabilities.
Source for further information
and data: Published results from
the 1990 survey and other reports
are available from:
Office of Highway Information
Management, HPM-40
Federal Highway Administration
400 Seventh Street, SW
Washington, DC 20590
(Phone: 202-366-0160;
Fax: 202-366-7742)
Data tapes are available from:
Center for Transportation Information,
DTS-44
DOTNolpe National Transportation
Systems Center
Kendall Square
Cambridge, MA 02142
(Phone: 617-494-2450;
Fax: 617-494-3633)
Source for further information
and data: PSID data files and a
User Guide are available from:
Inter-University Consortium for
Political and Social Research
(ICPSR) .
P.O. Box 1248
Ann Arbor, Ml 48106
(Phone: 313-763-5010)
PSID files are classified as main
files, special public files, or special
restricted files. Special public files
include files on child-birth history,
adoption history, marital history,
relationships, and work history. One
file of interest is the 1990 study on
health and health care of the
elderly.
Family Economics Review
• Cost of Food at Home
Cost of food at home estimated for food plans at four cost levels, March 1992, U.S. average1
Cost for 1 week Cost for 1 month
Sex-age group Thrifty Low-cost Moderate- Liberal Thrifty Low-cost Moderate- Liberal
plan plan cost plan plan plan plan cost plan plan
FAMILIES
Family of 2:2
20 - 50 years ... . . .. • . .......... $49.50 $62.80 $77.40 $96.50 $214.60 $272.60 $335.60 $417.90
51 years and over ....... . .... . .. 47.10 60.50 74.60 89.10 203.80 262.40 323.20 386.00
Family of 4:
Couple, 20 - 50 years and children-
1 - 2 and 3 - 5 years .... . .. . . . . . 72.20 90.50 110.50 135.90 312.70 392.30 478.90 588.90
6 - 8 and 9 - 11 years . . ...... . .. 82.70 106.20 132.70 160.00 358.50 460.80 575.10 693.20
INDIVIDUALS3
Child:
1 - 2 years .... . .. . . .. ...... . ... 13.10 16.00 18.60 22.60 56.70 69.30 80.80 97.90
3- 5 years .... . .. . .......•..... 14.10 17.40 21 .50 25.60 60.90 75.20 93.00 111 .10
6- 8 years ........... . ...• . .•.. 17.20 23.00 28.70 33.50 74.60 99.70 124.50 145.20
9- 11 years . ........ . .......... 20.50 26.10 33.60 38.80 88.80 113.30 145.50 168.10
Male:
12 - 14 years ................... 21 .30 29.60 36.90 43.30 92.30 128.30 159.90 187.60
15 - 19 years ... . .. . .... . .... . . . 22.00 30.60 38.00 44.00 95.30 132.50 164.60 190.60
20 - 50 years ........... .. ..... . 23.60 30.40 37.90 45.90 102.40 131.90 164.20 199.00
51 years and over . . ...... . . . . . . . 21.50 28.90 35.60 42.60 93.00 125.40 154.10 184.70
Female:
12 - 19 years . . ......... . ....... 21 .40 25.60 31 .10 37.60 92.80 111 .10 134.80 162.90
20 - 50 years ............... . . . . 21.40 26.70 32.50 41 .80 92.70 115.90 140.90 180.90
51 years and over ............... 21 .30 26.10 32.20 38.40 92.30 113.10 139.70 166.20
1Assumes that food for all meals and snacks is purchased at the store and prepared at home. Estimates for the thrifty food plan were
computed from quantities of foods published in Family Economics Review 1984( 1). Estimates for the other plans were computed from
quantities of foods published in Family Economics Review 1983(2). The costs of the food plans are estimated by updating prices paid by
households surveyed in 1977-78 in USDA's Nationwide Food Consumption Survey. USDA updates these survey prices using information
from the Bureau of Labor Statistics, CPI Detailed Report, table 4, to estimate the costs for the food plans.
2Ten percent added for family size adjustment. See footnote 3.
3rhe costs given are for individuals in 4-person families. For individuals in other size families, the following adjustments are suggested :
1-person-add 20 percent; 2-person-add 1 0 percent; 3-person-add 5 percent; 5- or 6-person-subtract 5 percent; 7- or more-person-subtract
1 0 percent.
1992 Vol. 5 No.2 39
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Family Economics Review
•
Consumer Prices
Consumer Price Index for all urban consumers (1982-84 = 1 00]
Unadjusted indexes
Group March February January March
1992 1992 1992 1991
All items .. . . .. ... . .. . .... . ........... . .... . ..... . 139.3 138.6 138.1 135.0
Food .... . .. . ...... . . · · · · · · · · · · · • · · · · · · · · · · · · · · · 138.1 137.5 137.2 135.8
Food at home ...... . .......•... ... ........ . ... 137.5 136.6 136.4 136.0
Food away from home ...... ... .. . .... . .. . ..... . 140.1 139.9 139.7 136.5
Housing . . .. . ... ...... ... .......... . ......... . . 136.6 136.1 135.7 132.6
Shelter . . .. . ..... . . . ..... . ....... . •........... 150.4 149.8 149.2 145.2
Renters' costs 1
...... . . . ... .. . . ... . ... .. ..... . 161.2 160.2 158.8 156.1
Homeowners' costs 1
... . . ..•.... . •. . • . .•.. •. . . 154.1 153.5 153.2 148.4
Household insurance 1
...... . .. .. . . . •. •.•.... 141 .0 140.8 140.5 137.3
Maintenance and repairs ... . ....... . ..•..•..•.. 128.4 128.3 128.0 124.2
Maintenance and repair services .... . ... . .... . . 132.0 132.0 131.9 129.0
Maintenance and repair commodities ....... . .. . 123.5 123.5 122.8 117.7
Fuel and other utilities ..... . . . . . .......... . . .. . . . 115.8 115.9 116.2 114.1
Fuel oil and other household fuel commodities . .. . . . 90.5 91 .5 92.0 99.3
Gas (piped) and electricity ....... . .... .. . .... .. . 111 .5 112.0 112.8 110.8
Household furnishings and operation . .......... . .. . 117.7 117.3 116.7 115.7
Housefurnishings ... .. .. ..... .............. . . . 109.4 108.7 107.8 107.5
Housekeeping supplies ...... .. . . . . ... . ..... . . . 128.6 129.3 129.5 128.1
Housekeeping services ....... . .. . ....... . . .. . . 130.3 130.0 129.6 127.0
Apparel and upkeep . . . .. .. .. . ........... . .. . .... . 133.4 130.2 127.9 128.8
Apparel commodities .......................... . 131 .2 127.7 125.3 126.7
Men's and boys' apparel ....... . .. . ....... . ... . 127.4 125.6 123.7 123.0
Women's and girls' apparel . . . . .. ... . . .. . ... . .. . 133.6 128.2 125.0 129.5
Infants' and toddlers' apparel ........ . ..... . .. . . . 127.1 126.3 126.6 128.7
Footwear ............. . .. ..... ... . .. .. ..... . 124.9 122.4 121.3 120.8
Apparel services ........•..•.....•....... .. . . .. 146.6 146.5 145.4 141 .5
Transportation .. . . ..... . . , . ............... . .. . . . 124.4 124.1 124.5 122.3
Private transportation .... . .......... . ... .. . . ... . 122.2 122.0 122.5 119.9
New vehicles .. . . . .. . .... . .................. . 129.1 128.9 128.7 126.1
Used cars . . .. ... ....... .. .................. . 115.7 116.1 117.8 114.4
Motor fuel . ..... ... ...................... . .. . 93.4 92.9 94.5 94.6
Automobile mai