Family Economics Review [1992, Volume 5, Number 4]

              Editor
Joan C. Courtless
Editorial Assistant
Jane W. Fleming
E
Family Economics Review is written
and published each quarter by the
Family Economics Research Group,
Agricultural Research Service,
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N 0 M I C s
II II II II
1992 Vol. 5 No.4
Feature Articles • 2
9
17
A Comparison of Income, Income Sources, and
Expenditures of Older Adults by Educational Attainment
Maxine Hammonds-Smith, Joan C. Courtless, and F. N. Schwenk
Impact of Children's Employment on the Economic
Status of Two-Parent Families
Mary Ann Noecker Guadagno
Trends in Education
Joan C. Courtless
PROPERTY OF THE
LIBRARY
OCT 21 1993
Research Summaries
University of North Carolina
at Greensboro • 28 Age at Retirement
30 The 1991 Deceleration in Inflation
32 Workers With Low Earnings: 1964 to 1990
Regular Items • 34
36
37
38
39
40
41
42
Charts From Federal Data Sources
Recent Legislation Affecting Families
Data Sources
Journal Abstracts and Book Summary
Cost of Food at Home
Consumer Prices
Index of Articles for 1992
Reviewers for 1992
2
Feature Articles • A Comparison of Income, Income
Sources, and Expenditures of Older
Adults by Educational Attainment
By Maxine Hammonds-Smith 1
Assistant Professor
Texas Southern University
Joan C. Courtless
Family Economist
Family Economics Research Group
F.N. Schwenk
Research Leader
Family Economics Research Group
The economic status of older adults differs by their level of formal education.
Using the 1990 Consumer Expenditure Survey, the income, expenditures,
and educational attainment of adults 65 years and older were analyzed.
Nearly half (48 percent) of household heads 65 years and older had less
than a high school education. Those with lower educational attainment had
less annual income than those with higher levels of education. Income level
increased as educational level increased. The least educated group of older
adults received 62 percent of their income from Social Security; the most
educated group received 32 percent. Those with higher levels of education
were more likely to be employed and received 27 percent of their income
from earnings, compared with 19 percent among those with 8th grade or less
education. Older adults spent over half of their total expenditures on housing
and food. The group with the lowest educational level spent more on health
care than on transportation. The group with the highest educational level
spent more on transportation than on food or health care.
ducation directly and
indirectly affects economic
well-being at every stage
of life. Education enables
people to develop marketable skills,
obtain better jobs, save to meet future
needs, and be aware and avail them­selves
of community services.
Older adults with less schooling likely
have lower income levels than those
with more education. They likely had
lower incomes during their working
1Visiting Professor, Family Economics Research
Group.
years. They may have been less able to
save and may have been less aware of
the need to save for retirement years.
With less education, they are likely to
have fewer opportunities for part-time
or full-time employment when they are
65 or older. Also, less educated older
adults may be less likely to obtain
community services that could alleviate
their financial situation.
Previous studies have found that for
those in the labor force, educational
level does affect income level (1,4,5).
Family Economics Review
8th grade or less
Some high school
High school graduate
Any college
This impact has been increasing. In
1963, those with a college degree
earned about 2.1 times as much as those
without a high school diploma; by
1987, the ratio was more than 2.9 (1).
Educational attainment by age, 1990
6
29
11 c==J <_~syears
19-65yearsorolder
31 ..........
27 52= 25111111111111111--------~------------~
this study, only consumer units who
1 . 3 were comp ete mcome reporters were
selected. Findings are based on responses
from 3,715 consumer units with refer­ence
persons 65 years and older.
The purpose of this study was to deter­mine
the extent to which economic well­being
after age 65 is associated with
educational attainment.
consumer units2 is interviewed once
each quarter for five consecutive quarters;
the first interview is used only for
bounding purposes. Using a rotating
sample design, about one-fifth of the
sample is replaced each quarter. The
1990 CE, with a response rate of 86
percent, contains information from
about 20,000 interviews. Income data
are annua) , and quarterly expenditure
data are multiplied by four to provide
estimates of annual expenditures. Data
are weighted to represent the U.S.
noninstitutionalized population. For
Characteristics of Older Adults
by Educational Level
Levels of educational attainment were
grouped into four categories. As shown
in the figure, reference persons 65 years
or older were less educated than younger
adults. Almost 29 percent had 8 years
or less of education, 19 percent had some
high school, 27 percent had graduated
from high school, and 25 percent had
attended college and may have graduated.
Table 1 shows the characteristics of
households headed by adults 65 years
and older by educational levels.
Source of Data
Data for this study are from the interview
component of the 1990 Consumer
Expenditure Survey (CE), conducted
by the Bureau of the Census for the
Bureau of Labor Statistics. The CE is
an ongoing survey that collects data on
household expenditures, income, and
major socioeconomic and demographic
characteristics. A national sample of
1992 Vol. 5 No. 4
2 A 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 as 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.
3Complete income reporters 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.
3
Table 1. Characteristics of households headed by adults 65 years or older, by educational levels, 1990
8th grade Some High school Any
Characteristic All65+ or less high school graduate college
Number of households 17,850 5,156 3,429 4,841 4,423
(weighted, in thousands)
Percent
Before-tax household income
Under $10,000 36.7 56.8 33.0 34.2 18.8
$10,000 - $14,999 19.6 18.5 23.8 19.8 17.3
$15,000 - $19,999 12.4 10.8 16.1 13.0 10.6
$20,000 - $29,999 16.2 8.7 17.1 17.6 22.8
$30,000 and over 15.1 5.2 10.0 15.4 30.5
Family type
Husband/wife families 44.1 38.8 47.5 43.3 48.6
Other families 10.9 11.5 14.8 8.4 9.9
Single males 10.2 15.4 7.6 8.3 8.2
Single females 34.8 34.3 30.1 40.0 33.3
Geographical location
Urban 83.4 78.7 81.1 87.3 86.5
Rural 16.6 21.3 18.9 12.7 13.5
Housing tenure
Homeowner without mortgage 62.7 63.0 64.6 61.8 62.0
Homeowner with mortgage 15.1 8.6 15.9 14.9 22.2
Renter 22.2 28.4 19.5 23.3 15.8
Reference person
Race
Non-Hispanic White and other 88.0 77.7 86.6 93.2 95.3
Non-Hispanic Black 9.1 15.4 11.9 5.6 3.3
Hispanic 2.9 6.9 1.5 1.2 1.4
Age (years)
65-69 29.1 18.9 29.9 33.8 35.0
70 - 74 26.9 21.8 29.2 31.4 26.2
75 - 79 22.0 25.2 20.4 21.9 19.6
80 and older 22.0 34.1 20.5 12.9 19.2
Marital status
Married 45.9 41.4 48.5 44.1 50.9
Widowed 40.3 46.1 35.9 43.9 32.9
Divorced/separated 9.7 8.8 11.2 9.0 10.6
Never married 4.1 3.7 4.4 3.0 5.6
Employment status
Reference person employed 17.5 11.0 13.6 22.1 23.1
Others only employed 13.0 13.6 16.9 11.1 11 .5
No earner 69.5 75.4 69.5 66.8 65.4
4 Family Economics Review
Income
For all older adult households, 37 per­cent
had an annual income of less than
$10,000.4 Fifty-seven percent of those
with 8 or less years of education and 19
percent of those with college experience
indicated an annual income of less than
$10,000. Households of older adults
with college experience clearly had
higher annual incomes with more than
30 percent of them reporting an annual
income of $30,000 and over. These
findings corroborate those reported in
previous studies-that individuals with
more education are more likely to have
higher incomes.
Family Type
Overall, 44 percent of the older adults
were husband-wife families, about 35
percent were single females, and 10 per­cent
were single males. Those with
college experience were more likely to
be living with a spouse than those with
less education. They were younger, and
a lower percentage were widowed.
Possibly, because of their college
experience, these people may have been
employed at less hazardous jobs with a
lower incidence of job-related accidents,
where health-care benefits were avail­able,
and preventive health care was
supported.
Geographic Location
Overall, most (83 percent) older adults
reported living in urban areas. Those
with less education were more likely to
live in rural areas than those with more
education. The rural elderly, as a group,
tend to have endured higher levels of
poverty, poorer health, and more deterio­rated
housing than the urban elderly (8).
This sustained disadvantaged status
likely affects educational attainment.
Also, better job opportunities in urban
areas may have attracted those with
higher educational attainment.
4In 1990, the poverty threshold for a family of two
with the householder age 65 or older was $7,906.
1992 Vol. 5 No.4
Housing Tenure
Most older adults owned their home;
only 22 percent reported renting. At
this stage of the family life cycle, it
was expected that a large percentage
of people would be homeowners with­out
a mortgage: More than 60 percent
of older adults at each educational level
reported owning without a mortgage.
Although only 15 percent of all older
adults were homeowners with a mortgage,
22 percent of those with some college
had a mortgage. Few of those with
8 years or less of education (9 percent)
were homeowners with a mortgage:
They were more likely to be renters-
28 percent reported renting.
Race
Overall, 88 percent of the older popula­tion
were non-Hispanic White, Asian,
Native American, and other; 9 percent
were non-Hispanic Black; and 3 percent
were Hispanic. Of those with any college
education, 3 percent were non-Hispanic
Black and 1 percent was Hispanic. Of
those with 8 years or less of education,
15 percent were non-Hispanic Black
and 7 percent were Hispanic.
Clearly, the non-Hispanic Black and
Hispanic populations are over-represented
among those with lower educational
levels. This cohort grew up when there
were few opportunities for members of
minority populations to obtain a higher
education.
Age
Those with less education tended to be
older. Twenty-two percent of all older
adults in this sample were 80 years or
older, but among adults with 8 years or
less of education, 34 percent were 80
years or older. This older cohort had a
difficult time to continuing their educa­tion
during the Depression of the 1930's.
• Households of older
adults with college
experience clearly
had higher annual
incomes with more
than 30 percent of
them reporting an
annual income of
$30,000 and over.
5
Table 2. Income and income sources of households headed by adults 65 years or older, by educational levels,
1990
Average income Percent of income from source
8th Some High 8th Some High
Income sources All65+ grade or high school Any All65+ grade or high school Any
less school graduate college less school graduate college
Before-tax income $18,646 $12,128 $16,276 $18,072 $28,712
After-tax income 17,517 11,865 15,624 17,048 26,089
Social Security and 8,357 7,496 8,652 8,370 9,118 45 62 53 46 32
Railroad Retirement
Eamings1 4,308 2,298 3,424 3,975 7,702 23 19 21 22 27
Pensions and annuities2 3,294 1,186 2,488 3,168 6,514 18 10 15 18 23
Interest and dividends3 2,255 641 1,464 2,176 4,837 12 5 9 12 17
Other4 432 507 248 383 541 2 4 2 2 1
~Incl udes wages and salary income; income (or loss) from nonfarm business, farm, and roomers, boarders, rental units.
lrom private companies, the military, or government.
Includes royalties, estates, and trusts.
4
Includes supplemental security income, unemployment compensation, workers' compensation, veterans' benefits, public assistance or welfare, value of food
stamps, regular contributions received.
Marital Status
Overall, 46 percent of the older adults
were married, whereas 40 percent were
widowed. Those with some college
education were more likely than other
education groups to be married (51
percent). Those with 8 years of education
or less were more likely to be widowed
( 46 percent). Over one-third of this
latter group were 80 years or older,
increasing the likelihood of a spouse
being deceased.
Employment Status
In 18 percent of the households, the
elderly reference person was employed.
Employment was more likely if the
education level of the elderly reference
person was relatively high. Twenty-two
percent of those with a high school
diploma and 23 percent of those with
college experience were employed.
6
Income Sources and Mean
Annual Income
Table 2 shows the average family income
before and after taxes and sources of
income by educational level of the refer­ence
person. The overall average before­tax
income reported by people 65 years
and older was $18,646. For those with
college experience, average before-tax
income was $28,712--'-more than twice
that of those with an 8th grade or less
education ($12,128).
Sources of income for older adults
included Social Security or Railroad
Retirement ( 45 percent of household
income), earnings (23 percent), pensions
and annuities (18 percent), and interest
and dividends (12 percent). Average
income from Social Security was
$8,357, from eamings-$4,308, from
pensions and annuities-$3,294, and
from interest and dividends-$2,255.
Educational attainment was a major
predictor of annual income among older
adults. Those who had higher levels of
education indicated higher incomes
from every major source.
At every educational level, however,
older adults indicated that Social Security
was their major source of income
followed by earnings, pensions and
annuities, and interest and dividends.
The least educated group of older adults
was most dependent on Social Security
as a source of income. Those with 8 years
or less of education reported that 62
percent of their income was from Social
Security. This percentage decreased
as years of education increased. Those
with college experience received 32
percent of their income from Social
Security.
The percentage of income received from
earnings, annuities and pensions, and
interest and dividends each increased as
Family Economics Review
Table 3. Expenditures of households headed by adults 65 years or older, by educational levels, 1990
Average exQenditures
8th
Expenditures All65+ grade or
less
Total expenditures $16,977 $11,777
Housing 5,627 4,215
Food 3,184 2,456
Transportation 2,793 1,510
Health care 2,092 1,922
Entertainment 650 278
Apparel and services 603 327
Retirement 499 201
Cash contributions 267 127
Life insurance 259 173
Other 1,003 568
years of education increased. Overall,
23 percent of income in households
headed by adults 65 years and older was
derived from earnings. For those with
an 8th grade or less education, 19 per­cent
of their income came from earnings,
compared with 27 percent for those
with some college education. People 65
years and older with college experience
may have more opportunities for earn­ings
or may enjoy their work more than
those with less education. Moehrle (6),
in a study of elders 62 to 74 years of
age, found that people with more educa­tion
(and higher earnings) may post­pone
retirement because the opportunity
costs of retirement are greater. Burtless
and Moffitt (3), using data from the
Social Security Administration 's Retire­ment
History Survey of 4,600 men,
found that men with some college edu­cation
not only retire about 1 year later
than other men but also have greater
post-retirement hours of work.
1992 Vol. 5 No. 4
Some High
high school Any All65+
school graduate college
$13,873 $17,137 $25,270
4,509 5,765 7,991 33
3,011 3,189 4,161 19
2,168 3,006 4,538 16
1,678 2,008 2,702 12
513 647 1,193 4
452 687 949 4
285 493 1,020 3
135 159 649 2
195 278 390 1
927 905 1,677 6
Eighteen percent of income received by
older adults came from a pension or an
annuity. Those with an 8th grade or less
education had less of their income from
pensions or annuities (only 10 percent),
compared with those with college experi­ence
(23 percent). The type of job held
by an individual determines, to a great
extent, whether or not he or she will
receive a pension or annuity-as well as
how much it will be worth. Those with
college experience were more likely to
have worked in jobs where they would
have pension and annuity plans, com­pared
with those with less education.
Twelve percent of the income of older
adults was in the form of interest or
dividends. Of those in the group with
least education, only 5 percent of their
income came from interest and dividends,
compared with 17 percent for those
with college experience. This suggests
that as educational attainment rises, the
ability or inclination to save and invest
also rises.
Percent of total exQenditures
8th Some High
grade or high school Any
less school graduate college
36 33 34 31
21 22 18 16
13 16 17 18
16 12 12 11
2 4 4 5
3 3 4 4
2 2 3 4
1 1 3
1 1 2 2
5 6 5 6
Allocation of Expenditures
Table 3 shows the allocation of expendi­tures
of consumer units with household
heads 65 years and over. Total household
expenditures for all older adults, 65 years
and over, averaged about $17,000 and
ranged from less than $12,000 for those
with an 8th grade or less education to
over $25,000 for those who had
attended college.
The higher the education attainment of
older adults, the more income they have
to spend. For each expenditure (except
health care), the amount spent increases
with years of education. Spending pat­terns
(percentage of total expenditures),
however, vary. Expenditures for housing,
food, transportation, and health care
accounted for 80 percent of total expendi­tures
for all older adults. For those with
8 years of education or le s, these four
expenditures accounted for 86 percent
of total expenditures, compared with
83 percent for those who had some high
school education, 81 percent for those
who had completed high school, and
76 percent for those with some college
education.
7
Housing
Overall, older adults spent one-third
of their total expenditures on housing.
Older adults with educational attainment
of 8th grade or less spent the largest
percentage (36 percent) of their total
expenditures in the housing area, whereas
the group with some college education
spent the lowest percentage (31 percent).
Food
Food accounted for about one-fifth of
older adults' total expenditures. The two
less educated groups spent larger per­centages
of their total expenditures on
food than did the two more educated
groups. The group with college experi­ence
spent the smallest percentage of
their total expenditures (16 percent) on
food.
Transportation
Older adults spent 16 percent of their
total expenditures on transportation. The
share of total expenditures attributed to
transportation increased as educational
level increased. The least educated group
spent 13 percent for transportation,
whereas the group with the most educa­tion
spent 18 percent. This latter group
also spent a higher amount for transpor­tation
than for any other item except
housing. This expenditure likely reflects
greater amounts of travel among those
with college experience.
Health Care
Overall, older adults spent 12 percent of
their total expenditures on health care.
Older adults who had the least amount
of education (8 years or less) spent a
higher percentage (16 percent) of their
total expenditures on health care than
those with more education, probably
reflecting their higher average age: one­third
were 80 years or older. This group
also spent a larger dollar amount for
health care than those with some high
school education, even though total
expenditures were less. These results
support those reported by Burtless (2):
that less educated older people may have
more health problems than those with
8
more education. Also, less educated older
adults are less likely to have insurance.
Conclusions and Implications
Education is related to the economic
well-being of individuals during their
later years. Using the 1990 Consumer
Expenditure Survey, income, income
sources, and expenditures of households
headed by people 65 years and older
were analyzed by educational level.
Findings show that even in the later
stages of the family life cycle, the
higher the educational attainment, the
higher the income.
Since 29 percent of the elderly had 8th
grade education or less and an average
income of $12, 128, it is clear that
substantial numbers of the elderly are
not "advantaged." Also, those older
adults with lower educational levels
References
spent proportionately more on housing,
food, and health care than did those
with higher educational levels. There­fore,
many of their financial decisions
concern basic needs. These older adults
may particularly benefit from financial
counseling and other services.
Because almost half of the older adult
reference persons have less than a high
school education, there are implications
for educational and assistance programs:
to decrease barriers that may make it
harder for some older adults to make
wise financial decisions, and to provide
materials on finances and services that
are written clearly and concisely. Also,
social service professionals should
ensure that procedures for obtaining
services and financial counseling are
easy to understand so that the most
needy elderly can avail themselves of
these types of services.
1. Blackburn, M.L., Bloom, D.E., and Freeman, R.B. 1990. The declining economic
position of less skilled American men. In: G. Burtless, editor. A Future of Lousy
Jobs? The Changing Structure of U.S. Wages. The Brookings Institution, Washington,
D.C.
2. Burtless, G. 1987. Occupational effects on the health and work capacity of older
men. In: G. Burtless, editor. Work, Health, and Income among the Elderly. The
Brookings Institution, Washington, D.C.
3. Burtless, G. and Moffitt, R.A. 1984. The effect of Social Security benefits on the
labor supply of the aged. In: H.J. Aaron and G. Burtless, editors. Retirement and
Economic Behavior. The Brookings Institution, Washington, D.C.
4. Korninski, R. 1991. Educational Attainment in the United States: March I989
and I988. Current Population Reports, Population Characteristics. Series P-20,
No. 451. U.S. Department of Commerce, Bureau of the Census.
5. Korninski, R. 1990. What 's It Worth? Educational Background and Economic
Status: Spring 1987. Current Population Reports, Household Economic Studies.
Series P-70, No. 21. U.S. Department of Commerce, Bureau of the Census.
6. Moehrle, T. 1990. Expenditure patterns of the elderly: Workers and nonworkers.
Monthly Labor Review 113(5):34-41.
7. U.S. Department of Labor, Bureau of Labor Statistics. 1990. Consumer Expendi­ture
Survey: 1990 Interview Survey Public Use Tape and Documentation.
8. Zopf, Jr., P.E. 1986. America's Older Population. Cap and Gown Press, Inc.,
Houston, TX.
Family Economics Review
1992 Vol. 5 No. 4
•
Impact of Children's Employment
on the Economic Status of
Two-Parent Families1
By Mary Ann Noecker Guadagno
Consumer Economist
Family Economics Research Group
This article examines family economic status by considering children's
employment status in one- and two-earner, two-parent families. Using data
from the 1990 Consumer Expenditure Survey (CE) and 1987-88 Survey of
Families and Households, this study describes and compares two-parent
families by family employment status. CE data show that children were
more likely to work in paid employment when both parents, rather than one
parent, were employed. Children's mean annual earnings in two-earner,
two-parent families were $2,611 , compared with $2,704 in one-earner, two­parent
families. Although a majority of children ages 14 to 19 were employed,
the impact of children's employment on family income and expenditures
appears to be minimal. Descriptive results from the Survey of Families and
Households indicate that about 47 percent of children ages 12 to 18 in two­parent
families received an allowance and about 62 percent reported earned
income. Of those children with allowances, the average monthly allowance
was $35. Results suggest that, unlike in previous generations, children in
two-parent families are not employed out of economic necessity. Children
may be employed, at least in two-parent families, for a more social­psychological
reason than for an economical one.
ost studies of family
economic status assess the
income and expenditures of
adult family members. A
better understanding of children's role
in earning and spending money is needed
to help prepare educators, policymakers,
and families for social and economic
challenges of the 1990's.
increasing percentages of families with­out
adult males, increasing rates of teen­age
suicide and pregnancy, declining
test scores, and rising rates of poverty
among families with children.
Research in this area is important
because national statistics (2) show
that children are worse off than their
parents' generation on several important
dimensions of physical, mental, and
emotional well-being. A recent literature
review by Fuchs and Reklis (2) shows
1Based on a paper presented at the XVIIth World
Congress of the International Federation of Home
Economics in Hanover, Germany, July 28, 1992.
Families in the childbearing and child­rearing
life cycle stages are frequently
economically vulnerable (1,2). One way
families may respond to high demands
on family resources is by generating
additional income through the employ­ment
of both spouses or older children
(3,4).
Government data provide insight into
employment patterns and the economic
status of two-parent families. Data from
the Current Population Survey (CPS)
showed that 95 percent of all husbands
and 73 percent of all wives were
9
•
10
Children's
contribution to
family income ...
was small.
employed in 1987 (10). A majority of
employed husbands (93 percent) and
wives (68 percent) worked full time.2
When a wife worked full time, mean
family earnings were $41,764, com­pared
with $34,569 when she worked
part time and $31,008 when she was
not employed (10). In 1992, nearly half
( 46 percent) of the 13 million children
ages 16 to 19 were in the labor force
(12). A majority of those children
worked part time (73 percent) (12).
The literature on children's income
relative to family income is sparse (5,8).
The Bureau of the Census estimated
that 1989 median earnings for 15- to
24-year-olds were $6,313 for males and
$4,739 for females (14). A university
study (6) estimated aggregate children's
income at about $9 billion in 1989. Yet,
comparisons of children's income are
difficult to make because informal
money transfers within the family,
such as allowances and gifts, obscure
the money source and are difficult to
count (5).
A study offamilies in the United Kingdom
(5) showed that children receive income
from three major sources: Parental
pocket money or allowances, earnings
from part-time jobs such as paper routes,
and gifts from family and friends. Hill
(5) concluded that by the age of 5 to 7,
a majority of children are directly in­volved
in the distribution and spending
of a small percentage of family income.
The literature on children's expenditures
and their influence on family purchases
is increasing. McNeal (6) cited four
reasons for this increase. First, families
are smaller so the influence of each
child is greater. Second, rapid growth
in the number of one-parent families
increases the number of children doing
their own shopping. Third, families
have more money to spend on children
2Full time was defined by CPS as working 35
hours or more per week for a majority of weeks
worked during the year. Pa1t time was defined as
working less than 35 hours per week for a major­ity
of weeks worked during the year (13).
due to delayed childbearing. Fourth,
since both parents work in nearly 70
percent of households with children,
children are more likely to participate
in family purchase decisions.
McNeal (6) estimated that children
influence more than $132 billion of
consumer spending for children's items
such as snacks, toys, electronics, clothes,
and hobby supplies; housing items such
as furniture, televisions, stereos, and
yard equipment; and family items such
as vacations, automobiles, food, and
recreation. O'Hare (7) found that house­holds
with children spend more on all
products and services-especially
housing, food, and transportation.
This study describes the economic
status of two-parent families by consid­ering
the employment status of parents
and children. Family employment
status is defined in this paper as the
collective employment status3 of one or
both parents, an oldest child between
age 14 and 19, and other children in
the family. To examine the effect of
children's employment on the economic
status of one- and two-earner, two­parent
families, comparisons of family
income and expenditures are made for
families with and without employed
children.
The purpose of this paper is to approxi­mate
the percentage of family income
earned by children in two-parent families
and to examine whether family income
and expenditmes differ based on family
employment status. Findings will pro­vide
insight into two-parent family
income and expenditure differences
when two parents are employed, one
parent is employed, two parents and
an oldest child are employed, and one
parent and an oldest child are employed.
3Employed included all persons who worked
for money at some time during the year or who
worked 15 hours or more without pay in a family­operated
enterpJise. Nonemployed included all
persons who did not work for money duJing the
year ( I 1).
Family Economics Review
Data Sources
Data for this study are from the interview
component of the 1990 Consumer
Expenditure Survey (CE). CE is an
ongoing survey administered by the
Bureau of the Census for the Bureau of
Labor Statistics (BLS). Data collected
include household income, expenditures,
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.
Each year of CE data contains informa­tion
from about 20,000 quarterly inter­views
representing an average of 82.2
million consumer units. The reference
period for income data is 12 months
before the income interview, whereas
expenditure data are collected for the
previous 3 months. All families were
complete income reporters. 5
Estimates of children's income, separate
from family income, were available.
Unless otherwise noted, children's
income refers to earnings outside the
home. Unfortunately, children's expendi­tures
cannot be determined with CE data.
Thus, expenditure estimates include
expenses of all family members. Quarterly
expenditure data were multiplied by four
to provide annual expenditure estimates.
4A consumer unit consists of either: (I) all
members of a particular housing unit 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 as 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.
5Complete income reporters are respondents who
provide values for major sources of income such
as wages and salaries, self-employment income,
or Social Security income. Complete income
reporters may not have provided a full accounting
of income from minor sources.
1992 Vol. 5 No.4
Figure 1. Family 1 employment status, 1990
Employed Percent
Husband, wife, and
child 1't-t-:.=:.-.-......t:: ..._ ___ ___][ 49
Husband and wife
[Lt. ...:..:...... f::....__ _____J[ ss
Husband or wife2
Husband or wife,
and child2
[1]9
[1!]7
1Two-parent families with oldest child age 14 to 19.
2Parent not employed was a homemaker, student, or retired.
Weighted n = 5.9 million families.
Data may be weighted to obtain estimates
of the U.S. noninstitutionalized
population.
For the present analysis, four groups of
two-parent families with an oldest child
between ages 14 and 19 were identified
from CE data: Group l-one parent
employed, oldest child employed (n=97;6
Group 2-one parent employed, oldest
child not employed (n=l22); Group 3-
two parents employed, oldest child
employed (n=632); and Group 4--two
parents employed, oldest child not
employed (n=468) (figure 1).
Children between the ages of 14 and 19
were selected for analysis. The lower
age limit in this study was ba ed on the
assumption that children in this age
group were legally employable in most
States. The upper age limit was selected
for study based on assumptions that
most children remain financially de­pendent
on their parents up to I year
after completing high school. Although
the age limits selected for study are
6Unweighted number of families.
arbitrary, the upper age breakout
conforms with employment status
tables produced by the U.S. Department
of Labor (12).
Excluded from analysis were a small
percentage of two-parent families with
a parent who could not work due to
illness, disability, or inability to find a
job. This situation was not considered
permanent. That is, parents were not
able to work because of mitigating
factors-health or labor force obstacles;
they had not exercised free choice to
stay at home. Notably, mean family
income for the excluded group was
significantly lower than income in the
other families.
Furthermore, only two-parent families
with an oldest child age 14 to 19 and
living with both parents were selected
for analysis. Sample selection criteria
were chosen to en ure sample homo­geneity,
important for interpreting study
results.
11
Thus, this study does not include two- Table 1. Characteristics of two-parent families with oldest child
parent families with an oldest child age age 14 to 19 by family employment status, 1990
19 or younger living outside the family
home (such as a college student) or Famil:i emQlO:iment status
those with a nonemployed oldest child One-Qarent earner Two-Qarent earner
age 19 or younger and employed
Family characteristics Child younger children. Child not Child Child not
employed employed employed employed
The final sample was weighted to repre-
sent the noninstitutionalized population Number of families
of 3.3 million two-parent families with Weighted (in thousands) 420 540 2,899 2,086
an employed oldest child age 14 to 19, Mean family size 4.7 4.7 4.1 4.2
and 2.6 million comparable families Number of earners 2.2 1.0 3.2 2.1
without an employed oldest child. Number of employed children 1.0 0 1.0 0
Number of autos 1.7 1.6 1.9 1.6
Family Employment Status: Mean father's age 42.5 44.2 43.0 42.1
One Parent Employed-With Mean mother's age 40.2 40.9 40.7 39.7
and Without Employed Percent
Children Employment status
Oldest child
Family Characteristics Full time 8.4 NA1 8.0 NA
Slightly less than half (44 percent) Part time 91.6 NA 92.0 NA
of the two-parent families with one Father
employed parent had an employed child
Full time 85.5 82.1 86.9 82.8 or children (table 1). Most (92 percent)
Part time 8.9 12.6 13.1 17.2 of the children worked part time. There
were no noticeable differences in family Not employed/missing 5.5 5.3 0 0
size or housing tenure for one-employed- Mother
parent families with and without Full time 5.4 1.0 51.1 48.9
employed children. Average family Part time .1 3.6 48.2 50.6
size for both groups was 4.7 members; Not employed 94.5 95.5 0.7 0.5
about 72 percent of both groups were Father's education
homeowners. Elementary 6.5 13.2 4.1 3.8
Some high school 11.8 14.2 9.9 9.2
One-employed-parent families with High school graduate or
an employed child differed from those some college 53.6 47.7 55.5 54.3
without an employed child relative to College graduate or more 28.1 24.9 30.5 32.7
parent's age, employment status, educa- Mother's education
tion, race, and place of residence. A Elementary 11.7 11.8 3.3 3.8
comparison of parents with nonem- Some high school 12.2 22.6 8.4 15.0 ployed and employed children showed
High school graduate or
that parents of employed children were
some college 73.1 58.8 68.7 62.5 slightly younger and were more likely
to work full time, fathers were slightly College graduate or more 3.0 6.8 19.7 18.7
more likely to have completed college, Father's race or origin
and mothers were more likely to have Non-Hispanic White 82.5 75.0 87.9 79.1
completed high school or some college. Other2 17.5 25.0 12.1 20.9
Also, parents with employed children Housing tenure
were more likely to be white or urban Own 71.9 71.9 88.2 77.9
residents than those without employed Rent 28.1 28.1 11.8 22.1
children. In contrast, single-earner Residence
families without an employed child Urban 90.1 82.9 79.4 81.3
were more likely to include older parents, Rural 9.9 17.1 20.6 18.7
parents who were slightly less educated,
12 Family Economics Review
minority families, or those living in
rural areas. Differences between families
with and without employed children
may be due to economic factors affect­ing
children such as job availability or
access to job information, or personal
factors such as children's career interests
and educational goals.
Family Income
In families with one employed parent,
children's contribution to family in­come
was small-$2,704, on average,
or about 5 percent of family income
(figure 2).
Average before-tax family income for
single-earner, two-parent families with
employed children was considerably
higher than those without employed
children, $50,444 compared with
$37,643 (figure 2). It appears that the
more affluent single-earner, two-parent
families have children who work.
Expenditures
One-earner, two-parent families with
an employed child spent $6,678 more
annually than those without an em­ployed
child, $42,523 compared with
$35,845 (table 2, p. 15).7 Single-earner,
two-parent families with an employed
child spent 3 percentage points more for
transportation and retirement and 2 per­centage
points more on entertainment
and miscellaneous expenses than their
counterparts without an employed child.
Expenditures on clothing were 6 per­cent
of total annual expenditures for
both groups. Expenditure shares for
families with employed children were
lower for housing, food, and educational
expenses than for comparable families
without employed children. These latter
expenditure share differences may
reflect the income differential between
family groups.
70 nly families with children who reported a dollar
amount were included in income and expenditure
estimates. Results for one-parent earner families
with an employed child should be interpreted with
caution because of sample size.
1992 Vol. 5 No.4
Figure 2. Children's 1 earnings and before-tax family income by
family employment status, 1990
Employed
Children's earnings 1 Before-tax family income
Husband, wife, child ~ $2,611 1$47,512
Husband and wife ~-------------,J
L__ ________ __j\$46,531
Husband or wife,2
child
Husband or wife2
l""l.__$2_,7_0_4 ____ ----r:=....,...-:-:;:--11 $50,444
L[ _______l $37,643
10idest child age 14 to 19 in two-parent families. Only families with children who reported
~ dollar amount were included in the income estimates.
~arent n_ot employed was a homemaker, student, or retired. Results should be interpreted
w1th caution because of small sample size.
Family Employment Status:
Two Parents Employed-With
and Without Employed Children
Family Characteristics
Slightly over half (58 percent) of the
families with two employed parents had
an employed child or children (table 1).
As would be expected, most (92 percent)
of the children who were employed
worked part time. There were no dis­cernible
differences in family size,
parent's age, education, or location of
residence between families with and
without an employed child. Families
with an employed child had 4.1 mem­bers,
on average, compared with 4.2
members for those without an employed
child. Parents in both groups were
predominantly in their early forties
and living in urban areas.
Most fathers in both groups worked full
time. About half of the mothers in both
groups worked part time. However, in
families with employed children, mothers
were more likely to work full time.
There were pronounced differences in
the race and housing tenure of two­earner
families with and without
employed children. Families with an
employed child were more likely to
be white and homeowners (88 percent
white, 88 percent homeowners), com­pared
with those without an employed
child (80 percent white, 78 percent
homeowners).
Family Income
Children's contribution to family
income with two employed parents
was small. Children earned $2,611, on
average, or about 5 percent of family
income (figure 2). Average before-tax
income for families with employed
children was $47,512, compared with
$46,531 for families without employed
children.
Expenditures
Dual-earner, two-parent families with
employed children spent slightly more
than those without employed children
(table 2). On average, family expendi­tures
when children worked were
$2,031 more than when children were
not working.
13
•
14
About 62 percent of
two-parent families
with children ages
12 to 18 reported
children received
earnings from
regular jobs,
babysitting, or
other employment.
National Survey of Families and Households
Data from the National Survey of
Families and Households (NSFH)
were used to supplement CE data
related to children's allowances and
earnings. NSFH is a national multi­stage
area probability sample of
13,017 adults from U.S. households
in 1987-88. Minorities, single parents,
cohabitating parents, newlyweds,
and parents with stepchildren are
oversampled.
Data were collected using personal
interviews and self-report methods by
Temple University for the University
of Wisconsin-Madison. The response
rate was 74 percent. Currently married
adults with children between ages 12
and 181 were selected for analysis,
including 1,212 adults (weighted
n=l4.6 million). A broad range of
family issues was examined including
life history, living arrangements, marital
and parenting relationships, kin con­tact,
and economic and psychological
well-being.
Nearly half (47 percent) of the two­parent
families studied gave children
ages 12 to 18 an average monthly
allowance of $35-about $9 a week
in 1987 (see box table). One quarter
of these parents expected regular
work around the house; 34 percent
paid more for extra jobs.
About 62 percent of two-parent families
with children ages 12 to 18 reported
children received earnings from regu­lar
jobs, babysitting, or other employ­ment
(see box table). Only 3 percent
of the parents expected children to use
earnings for day-to-day family expenses;
22 percent of the parents expected
children to save for an education; 28
percent felt children should spend
their earnings on regular expenses
such as clothing and haircuts; and 50
percent believed children should use
their own money for special purchases.
1Sarnple selection criteria were slightly differ­ent
from CE analysis because of methodologi­cal
differences between studies (9, II).
Percentage of parents1 reporting
allowances, earnings, and selected
expenses of children, 1987--88
Children's income
and expenses
Receives allowance2
Includes regular work
around house
Additional pay for extra jobs
Earnings from regular job,
babysitting, or other
Children employed
Part time
Full time
Not employed
Parents require earnings used
for
Regular expenses such as
Percent
47
25
34
62
49
13
38
clothing and haircuts 28
Future educational expenses
Special purchase
Day-to-day family expenses
Child owns
Car
Motorcycle
Moped or motor scooter
Child pays for
Vehicle cost
22
50
3
20
3
2
Nearly all 34
Some 20
None 46
Maintenance and insurance
Nearly all 36
Some 28
None 36
1 Includes two-parent families with children
ages 12 to 18 (I!..= I ,212; weighted I!...= 14.6
million).
2Mean monthly allowance for children receiving
an allowance was $35.
Family Economics Review
Only transportation expenses showed
pronounced differences when expendi­tures
by two-parent-earner families with
and without employed children were
compared. Families with employed
children spent 4 percentage points more
on transportation than those without
employed children. The average number
of autos and vehicles owned, however,
was similar for both groups. Differences
in transportation costs seem to be work­related
and may also be affected by the
number of children of driving age. Em­ployed
parents with employed children
spent about the same expenditure share
as those without employed children
for retirement, clothing, education,
and other miscellaneous expenses but
a slightly lower share for housing, food,
and entertainment.
Conclusions and Implications
The primary conclusion that may be
drawn from this study was that the
effect of children's employment on the
economic status of two-parent families
appears to be minimal. Regardless of
whether one or two parents work in paid
employment outside the home, children
earn about the same, on average-a small
percentage of family income.
Caution in interpreting results seems
warranted, however, since the CE
does not directly account for allowances
or gifts given to children by parents,
relatives, and family friends (13).
Thus, children's monetary resources
and purchasing power are likely to be
understated in this paper.
Families with one employed parent
and an employed oldest child allocated
a higher share of total expenditures for
transportation, retirement, entertainment,
and miscellaneous items than compara­ble
families without employed children.
Higher family transportation costs
seem reasonable when children work.
However, higher expenditure shares for
1992 Vol. 5 No.4
Table 2. Expenditures of two-parent families with an oldest child
age 14 to 19 by family employment status, 1990
Farnil~ em2lo~ment status
One-garent earner Two-Qarent earners
Expenditures Child Child not Child Child not
employed employed employed employed
Number of families
Weighted (in thousands)1 331 629 2,306 2,678
After-tax income $43,297 $34,933 $43,234 $42,398
Total expenditures 42,523 35,845 41,611 39,580
Percent
Housing 24 28 27 28
Transportation 24 21 23 19
Food at home 12 15 11 12
Food away from home 3 6 4 5
Retirement 11 8 11 11
Clothing 6 6 6 6
Entertainment 6 4 5 6
Health care 4 3 4 4
Education and reading 2 4 3 3
Life insurance 2 2 2
Alcohol and tobacco 1 1
Othei 5 3 3 3
10nly families with children who reported a dollar amount were included in income and expenditure
estimates. Results for one-parent earner families with an employed child should be interpreted with
caution because of small sample size.
2Includes personal care, cash contributions, and miscellaneous expenses.
retirement, entertainment, and miscella­neous
items seem to reflect the relative
affluence of this group as well as possi­ble
value differences in their orientation
towards money.
In contrast, families with two employed
parents and an employed child had
expenditure shares similar to those
without employed children-with one
exception, transportation expenses. As
would be expected, families with an em­ployed
child spent a greater share of total
family expenditures on transportation.
Results suggest that, unlike in previous
generations, children in two-parent
families are not employed out of
economic necessity. It appears that
children may be employed, at least in
two-parent families, for a more social­psychological
reason than for an
economic one. This supports previous
research that parents view money as a
useful tool for teaching children ethical
and social attitudes about the value of
saving, budgeting, and planning (5).
15
References
1. Elder, G.H., Jr., Conger, R.D., Foster, E. M., and Ardelt, M. 1992. Families under
economic pressure. Journal of Family Issues 13(1):5-37.
2. Fuchs, V.R. and Reklis, D.M. 1992. America's children: Economic perspectives
and policy options. Science 255:41-46.
3. Guadagno, M.A.N. 1991. Economic status of two-parent families with employed
teens and young adults. Family Economics Review 4(4):2-10.
4. Guadagno, M.A.N. 1983. Economic stress: Family financial management. In:
H.l. McCubbin and C.R. Figley, editors. Stress and the Family: Coping With
Normative Transitions, Volume 1. Brunner/Mazel, New York. pp. 201-217.
5. Hill, M. 1992. Children's role in the domestic economy. Journal of Consumer
Studies and Home Economics 16:33-50.
6. McNeal, J.U. 1992. The littlest shoppers. American Demographics 14(2):48-50, 52-53.
7. O'Hare, W. 1992. How children are changing. American Demographics 14(2):36-42.
8. Patton, W. and Noller, P. 1991. The family and the unemployed adolescent.
Journal of Adolescence 14:343-361.
9. Sweet, J., Bumpass, L., and Call, V. 1988. National Survey of Families and
Households: 1988. Tape and Documentation, Center for Demography and Ecology,
University of Wisconsin-Madison.
10. U.S. Department of Commerce, Bureau of the Census. 1990. Statistical Abstract
of the United States, 1990. [llOth ed.]
11. U.S. Department of Labor, Bureau of Labor Statistics. Consumer Expenditure
Surveys: 1990 Interview Survey Public Use Tapes and Documentation.
12. U.S. Department of Labor, Bureau of Labor Statistics. 1992. Employment and
Earnings 39(5):10.
13. 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.
14. Welniak, E.J., Jr. and Littman, M.S. 1990. Money Income and Poverty Status in
the United States: 1989. Current Population Reports, Consumer Income. Series P-60,
No. 168. U.S. Department of Commerce, Bureau of the Census.
16 Family Economics Review
1992 Vol. 5 No.4
• Trends in Education
By Joan C. Courtless
Family Economist
Family Economics Research Group
Since 1969, U.S. expenditures for education have accounted for about
7 percent of the Gross National Product. Trends in enrollment indicate that
children are starting school at an earlier age and staying in school longer.
Data for 1991 show that 78 percent of Americans age 25 and over had
completed high school and 21 percent had completed 4 years of college.
Two surveys-the Current Population Survey and the Survey of Income and
Program Participation-have found a strong, positive relationship between
income and education. According to the U.S. Department of Education,
public school expenditures, per pupil, averaged $4,641 in 1989-90 and are
projected to reach $5,814 in 2000-2001. Between 1975 and 1990, charges
to students increased at an average annual rate of 14 percent for public
colleges and universities and 18 percent for private institutions. Tuition
accounts for about one-third of student costs when attending a public
college and about two-thirds of costs related to a private college education.
Sources of revenue for educational institutions and major sources of student
financial aid are also presented.
ITJ he importance of education
to our Nation is reiterated
by concerned citizens in
every area of endeavor. The
importance of education to the individual
and its economic consequences-the
strong, positive relationship between
educati nallevel and income-have
been widely reported. The cost of
education affects every American either
directly or through income, property,
sales, and other taxes. For over 20 years,
total U.S. expenditures for education
(including public and private elemen­tary,
secondary, and higher education)
have accounted for about 7 percent of
the Gross National Product (16). Also,
education is a vast enterprise involving
I in 4 Americans; most of these (89
percent) are students (60.2 million in
1990), but about 7.3 million people are
employed by schools and colleges (16).
This article examines enrollment in
schools and colleges, educational attain­ment
by demographic characteristics,
expenditures made by educational
institutions, sources of educational
funds, student costs, and financial aid.
Enrollment
In October 1990, 27 percent of all per­sons
3 years old and over were enrolled
in school, including at least 98 percent
of children between ages 6 and 15 (10).
Although numbers of children in kinder­garten
through high school fluctuate
with changing demographics, those
attending nursery school have increased
dramatically since 1964 (figure I, p. 18).
Full-time enrollment in college also
rose steadily during this 25-year period.
There were 47.0 million students
enrolled in prekindergarten through
grade 12 for the 1991-92 school year,
according to early estimates published
by the National Center for Education
Statistics (5). About 5.2 million students
(11 percent) were enrolled in private
schools. Enrollment is projected to
17
increase to 50.0 million by 2000. The
percentage of students attending private
schools is expected to remain at about
14 percent for elementary and 7 percent
for secondary levels (12).
Enrollment at institutions of higher
education reached an all-time high in
the fall of 1991-nearly 14.2 million
students (11). This represents an in­crease
of 17 percent over 1980 enroll­ment
figures (11,12). Since 1979, women
have outnumbered men on the Nation's
campuses; since 1988, this margin has
exceeded 1 million students and in
1991, women were projected to consti­tute
55 percent of all college students.
Also, numbers of women have ex­ceeded
those of men in graduate school
since 1984 (12). Other trends in full­time
versus part-time attendance and
public versus private enrollment are
shown in figure 2.
Educational Attainment
Americans are staying in school longer.
Median school years completed by
those 25 years old and over increased
from 12.1 years in 1970 to 12.7 years in
1989 (12). Largest increases were found
among Black males (9.4 years in 1970
and 12.4 years in 1989) and Hispanic
females (8.9 years in 1970 and 12.0
years in 1989). Educational attainment
varies greatly among age segments of
the population. In 1991, a total of 87
percent of people between the ages of
25 and 44 had completed high school,
compared with 49 percent of those 75
years and over (9).
Variation in educational attainment is
also apparent when percentages of
people 25 years old and over who have
completed 4 or more years of college
are compared. By race, 22 percent of
whites, 12 percent of blacks, and 34 per­cent
of other races had finished at least
4 years of college in 1991. By sex, 24
percent of males and 19 percent of
females had completed 4 years of
college in 1991 (9).
18
Figure 1. Full-time college and nursery school enrollment
10
8 College full-time ' - --...- - r ../
6 ./-./
./
./
./
4 I Nursery school 2 '
0
1964 69 74 79 84 89
Source: Kaminski, R. and Adams, A., 1992, School Enrollment-Social and Economic
Characteristics of Students: October 1990, Current Population Reports, Population
Characteristics, Series P-20, No. 460, U.S. Department of Commerce, Bureau of the Census.
Figure 2. Characteristics of college students: attendance status,
sex, and control of institution
Percent
100
80
60 -
40
20 ....... --- .....
Full time
/ -....-......-..__- - -- - - - --
/ ------------ Male
..... __.---- -- -------.
/
Private
0 ~-------------------------------------------------
1970 75 80 85 90
Source: Pluta, M.J., 1991, National Higher Education Statistics: Fall 1991 (Early Estimates),
U.S. Department of Education, Office of Educational Research and Improvement, NCES
92-038.
Family Economics Review
Table 1. Years of school completed, among Americans 25 years and
older
Years 1970
Elementary, 0-8 28.3
High school, 1-3 19.4
4 31.1
College, 1-3 10.6
4 or more 10.7
1980
18.3
15.3
34.5
15.7
16.2
1991
10.6
11.0
38.6
18.4
21.4
Source: U.S. Department of Commerce, Bureau of the Census, I99I, Statistical Abstract of the United
States, I99I, [11 Ith ed.] from U.S. Census of Population: I970, Vols. I and Jl; I980, Vol. I; and
Current Population Reports, Series P-20, No. 462.
Figure 3. Years of school completed, all persons 25 years and
older
Percent
100
80
60
40
20
4 years of college
(or more)
Source: U.S. Department of Commerce, Bureau of the Census, 199 1, Statistical Abstract of the
United States, 1991, {111th ed.] from U.S. Census of Population, 1940, 1950, 1960, 1970, and
1980, Vol. 1; and Current Population Reports, Series P-20, Nos. 415, 428, and 462.
1992 Vol. 5 No. 4
Table 1 shows the highest educational
level achieved by Americans, age 25
and over, in 1970, 1980, and 1991 (9,12).
In 1970, 52 percent had completed high
school, 21 percent had attended college
for at least 1 year, and 11 percent had
completed at least 4 years of college. In
1991,78 percent had completed high
school, 40 percent had attended college
for at least 1 year, and 21 percent had
completed at least 4 years of college (9).
A longer perspective of years in school
is shown in figure 3.
Among the high school graduate-age
population of 17- and 18-year-olds, the
percentage actually graduating peaked
in 1970 at 77 percent. Since 1980, when
only 71 percent of 17- and 18-year-olds
graduated, the proportion has risen
slightly (18). The number of people
returning to school at an older age or
taking the General Educational Devel­opment
(GED) test has allowed the
overall educational level of American
adults ages 25 and over to increase
steadily (18).
Korninski examined income levels by
educational attainment using data from
the Current Population Survey (9) and
the Survey of Income and Program
Participation (8). Findings from both
sets of data indicate there is a strong,
positive relationship between income
and education (table 2, p. 20). That is,
income levels are higher at each pro­gressively
higher level of education.
However, at each degree level there
were substantial differences in earnings
between men and women; mean earn­ings
for men were always higher. Also,
mean incomes of whites were signifi­cantly
larger than that of blacks at all
levels.
A study by Adelman (1) based on the
National Longitudinal Study of the
High School Class of 1972 found that
women's academic performance in high
school and grade point average in
college were superior to men's. Women
19
Table 2. Mean 1990 income by education attainment, sex, race, and Hispanic origin
Less than College
4 years High school 5 or more
Persons ages 18 and over Total high school 4 years 1 to 3 years 4 years years
Total $20,393 $11,045 $17,072 $20,864 $31,256 $42,880
Male 26,833 14,240 22,521 27,009 40,636 52,429
Female 14,259 7,859 12,406 15,258 21,549 29,477
White 21,126 11,489 17,520 21,364 31,854 43,466
Black 14,624 8,901 13,878 17,553 26,610 33,683
Hispanic origin 1 14,628 10,281 14,644 18,739 25,911 36,201
1Persons of Hispanic origin may be of any race.
Source: Kaminski, R. and Adams, A., 1992, Educational Attainment in the United States: March 1991 and 1990, Current Population Reports, Population
Characteristics, Series P-20, No. 462, U.S. Department of Commerce, Bureau of the Census.
entered college directly from high
school at the same rate as men and were
slightly more likely to earn scholarships.
Women were more likely to receive
their bachelor's degree in 4 112 years,
67 percent compared with 55 percent
for men. However, a much higher
percentage of women than men (both
without children) experienced unem­ployment
between the ages of 25 and
32. Also, women earned more than men
in only 7 of 33 major occupations.
Expenditures by Educational
Institutions
Elementary and Secondary Schools
For the 1978-79 school year, current
expenditures in public schools in the
United States totaled $139.8 billion
(constant 1988-89 dollars). By 1989-90,
these expenditures were estimated at
$174.4 billion. Projected figures for
2000-2001 are $237.7 billion (17). On
a per pupil basis, current expenditures
in constant 1988-89 dollars were $3,576
in 1978-79, $4,641 in 1989-90, and
$5,814 (projected) for 2000-2001.
Teachers salaries, on average, were (in
constant 1988-89 dollars) $26,609 in
1978-79, $30,145 in 1989-90, and
$35,541 (projected) for 2000-2001.
20
Professional salaries in the public
school system have increased faster
than nonprofessional salaries (figure 4).
Fringe benefits, however, have risen
even faster. The majority (56 percent)
of people who were employed by the
public school system were, in 1986,
classroom teachers (12). Service workers
(including craftsworkers and laborers)
were next at 17 percent, followed by
teacher's aides (9 percent), other profes­sional
staff (7 percent), clerical staff
(7 percent), and administrators and
principals (4 percent).
In 1988, 71 percent of elementary and
secondary teachers were female (12).
Male teachers were more likely to have
at least 20 years' experience, however
(30 percent compared with 18 percent
for female teachers). Male teachers were
also higher paid ($6,000 more), more
likely to receive a school year supple­ment
(for extra curricular activities or
extra duties) or a summer school supple­ment,
and to have other employment.
By 1989, a total of 96 percent of all
elementary and secondary schools
(public, private, and parochial) were
using computers for instructional
purposes (12). The median number of
students per computer was 20-23 in
elementary, 18 in the middle grades,
and 14 in high school. Instructional
computers were located most often in
computer labs, except in elementary
schools where they were as likely to
be in the classroom.
Postsecondary Schools
The Nation had more than 10,000
postsecondary institutions 1 in the fall
of 1989, employing over 2.6 million
people (2). Of all staff, 72 percent
were full time and 63 percent were
professional. Of all professional staff,
65 percent were full time and 57 per­cent
were men. Most (82 percent) of the
nonprofessionals2 worked full time.
1Postsecondary institutions may offer (I) academic
programs that lead to a degree; (2) ~cupational
or vocational programs that train in specific job
skills; and (3) continuing professional education
where additional skills are acquired in a specific
field of study.
2Includes technical, paraprofessionals, clerical and
secretarial personnel, skilled craftsworkers, and
service or maintenance personnel.
Family Economics Review
Figure 4. Payments by public elementary-secondary schools
(1983 = 100)
Index
180
160
Fringe ben'e fits / Salaries: - 140 .; ,
120
100
80
60
40
20
0
1975 77 79 81 83
"' _ ., Professional
, / ...... ..,.... Nonprofessional
/
Contracted services,
supplies and equipment
85 87 89
Source: U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract of the
United States, 1991, {111th ed.]
Of all people employed in postsecondary
education in 1989, a total of 95 percent
were employed in the Nation's 3,589
academic institutions of higher leaming3
(2). Among professional employees in
colleges and universities (62 percent of
all employees), 54 percent were faculty,
26 percent were support or service pro­fessionals
(such as librarians, account­ants,
counselors, coaches, and systems
analysts), 11 percent were instruction or
research assistants, and 9 percent were
in administrative, executive, or manage­rial
positions. Fifty-one percent of all
those employed in higher education
were women.
Instruction accounted for 34 percent of
expenditures in public institutions and
26 percent in private institutions in 1988
(7). In public and private institutions,
administration 4 of higher education
3These colleges and universities are recognized by
the Secretary, U.S. Department of Education, as
accredited at the college level.
'1ncludes academic support and libraries, student
services, institutional support, operation and
maintenance of plant, and mandatory transfers.
1992 Vol. 5 No. 4
accounted for 30 and 29 percent of
expenditures, respectively. From 1980
to 1990, academic salaries (full-time
faculty, 9 months of teaching) in 4-year
public colleges and universities in­creased
by 88 percent, while those in
private5 institutions increased by 104
percent. Fringe benefits for faculty
membt>rs increased 151 percent in
public and 166 percent in private
colleges and universities (12). Figure 5,
p. 22, shows how payments by colleges
and universities for professional and
nonprofessional salaries, fringe benefits
and contracted services, supplies, and
equipment have increased between
1977 and 1989.
College and university libraries account
for about 3 percent of current funds
expenditures for institutions of higher
education (12). Among the nine univer­sities
with over 5 million volumes in
1985, overall annual budgets ranged
5Excludes church-related colleges and universities.
•s· mce 1979, women
have outnumbered
men on the Nation's
campuses ...
21
•
22
... there is a strong,
positive relationship
between income and
education ...
Figure 5. Payments by colleges and universities (1983 = 1 00)
160
140 Fringe benefits
, " Salaries:
,... Professional
120
100
80
' ,... .,.,...
- --
Nonprofessional
60
Contracted services,
supplies and equipment
40
20
0
1977 79 81 83 85 87 89
Source: U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract of the
United States, 1991, {111th ed.]
from $14.8 to $30.5 million. Salaries
and wages accounted for 62 percent
of operating expenditures and books,
periodicals, audiovisual materials, and
other library materials required another
24 percent (12).
Sources of Funds for Education
The Federal Government
About 10 percent (4) of the Nation's
educational costs are borne by the
Federal Government. In FY 1991, total
Federal funding (elementary, secondary,
higher education, research programs at
universities, and others) amounted to
$54.6 billion, a decrease of 3 percent
since FY 1980 after adjusting for
inflation (4). Elementary and secondary
education programs received the most
money-$24.4 billion or 45 percent of
total funding, higher education received
$13.7 billion (25 percent), and research
programs at universities and related
institutions were awarded $12.8 billion
(23 percent).
(23 percent). Other education programs
(libraries, museums) received $3.7 bil­lion
or 7 percent of total funding.
Various Federal departments and
agencies fund educational and related
programs. Estimated outlays from the
U.S. Department of Education in FY
1991 were $24.9 billion, of which 41
percent was designated for student
financial assistance and guaranteed
student loans. Funds from other Federal
departments and agencies include:
• U.S. Department of Health and
Human Services, $8.0 billion-26
percent for Head Start, 62 percent
for research.
• U.S. Department of Agriculture,
$7.0 billion-81 percent for child
nutrition programs.
• U.S. Department of Defense, $3.5
billion--48 percent for research.
• U.S. Department of Energy, $2.7
billion-98 percent for research.
Family Economics Review
Figure 6. Sources of revenue for institutions of higher education, 1980 and 1988
100
80
60
40
20
0
1980
~----1111! Other
Public
1988
Sales and services
Gifts, grants, endowments
State and local government
Federal Government
Tuition and fees
100
80
60
40
20
0
1980
Private
1988
Source: Keough, K., 1991, Current funds revenues and expenditures of institutions of higher education: Fiscal years 1980--88, U.S. Department
of Education, Office of Educational Research and Improvement.
• U.S. Department of Labor, $2.6
billion-31 percent for the Job
Corps.
• National Science Foundation, $1.8
billion-88 percent for research.
State and Local Governments
State and local governments provide
most of the revenues for public elemen­tary
and secondary schools. Since 1979,
the State share has been higher than that
of the local government (16).
Colleges and universities collectively
receive almost one-third of their funds
from State and local governments;
public institutions receive a larger
share--47 percent in 1988 (7), com­pared
with only 3 percent for private
institutions.
Private Sources
Colleges and universities are more
likely than elementary and secondary
schools to be funded by private sources.
In 1988, 80 percent of revenues received
1992 Vol. 5 No.4
by private higher education institutions
and 43 percent of those received by
public institutions were from private
sources (7). As a percentage of total
revenues, Federal and State sources of
revenue for colleges and universities
declined between 1980 and 1988 while
tuition and fees increased (7, 15)
(figure 6).
Tuition and Fees. Tuition and fees
have increased as a source of revenue
for all higher education institutions
since 1980. For private colleges, tuition
and fees accounted for 39 percent of
funds in FY 1988, compared with 36
percent in 1980; for public colleges,
comparable percentages were 15 percent
in FY 1988 and 12 percent in FY 1980
(7). Between 1975 and 1990, mean
annual tuition increased from $599 to
$2,006 in public and from $2,614 to
$10,400 in private institutions (figure 7,
p. 24) (12). Since 1982, tuition has
increased faster than inflation in both
public and private institutions (15).
Voluntary Financial Support. Nine
percent of total revenues received by
private higher education institutions
and 3 percent of those received by
public institutions were in the form of
voluntary gifts, grants, or contracts in
1988. Individuals, including alumni,
contribute almost half of all private
gifts, grants, and contracts for colleges
and universities (figure 8, p. 24) (12).
Business corporations were the second
largest source of voluntary support,
22 percent in 1989 (12). Endowment
income provided 5 percent of total
revenues received by private colleges
and universities, but less than 1 percent
for public institutions (7).
Student Costs
Trends in tuition and room and board
expenses for full-time college students
are shown in figure 7, p. 24. Private insti­tutions
charge more for each of these
costs; tuition prices are about four times
greater than those charged by public
institutions. As a percentage of total
23
costs to students, tuition accounted for
64 to 68 percent in private and 34 to 36
percent in public institutions during the
1975-90 period (12). Between 1975 and
1990, charges to students increased at
an average annual rate of 14 percent for
public colleges and universities and 18
percent for private institutions.
As a share of the median family income,
college tuition at a private, 4-year insti­tution
increased from 16.5 percent in
1976--77 to 22.1 percent in 1987-88.
The share of median family income
required at a public, 4-year institution
increased by 0.7 percent over the same
period (15). Two factors that could
accelerate future tuition increases are:
projected declines in college enrollment
and decreasing levels of State appropria­tions
for public institutions, necessitated
by a weak economy (15).
A study of 593 private, general bacca­laureate
(undergraduate) institutions
was undertaken by the U.S. Department
of Education, Office of Research, to
determine whether the quality of a
college is reflected in the price it charges
for tuition and fees (3). The study
concluded that, in general, most higher
priced private institutions ranked higher
in qualitl than most lower cost private
colleges, but some low-cost colleges
outperformed even the most expensive
schools. The study recommended that
although students and parents are gener­ally
justified in judging institutional
quality on the basis of price, they can­not
be confident that higher prices at
one particular institution, as compared
with another, represent real differences
in quality. Higher prices could indicate
inefficiency or a marketing strategy.
6Indicators of quality included resources (finan­cial,
physical, academic, and number of student
services and facilities), reputation (application
rates), selectivity (student ability), and student
outcomes (graduation rate, graduate school rate,
sophomore retention rate, educational progress).
24
Figure 7. Average charges per full-time equivalent student,
institutions of higher education
$ thousand
16
14
12
10
8
6
4
2
0
1975
15,365
1980 1985 1990
• Tutition o Board • Dormitory
Source: U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract of
the United States, 1991, [ 11 1th ed.] from U.S. Department of Education, National Center for
Education Statistics.
Figure 8. Voluntary financial support of higher education
1970 1980
1989
• Individuals E!:! Foundations 13 Other
o Business corporation • Religious denomination
Source: U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract of the
United States, 1991, [1 11th ed.]
Family Economics Review
Financial Aid
Between 1980-81 and 1987-88, total
student aid from colleges and universities
increased from $2.8 billion to $4.7 bil­lion
(constant 1988 dollars) (15). Data
from the Surveys of Recent College
Graduates, funded by the National
Center for Education Statistics, show
that the proportion of college graduates
with undergraduate debt has increased
from 1 in 3 in 1977 to 1 in 2 in 1986.
Real median debt level7 for those with
debt increased by one-third (in constant
dollars) during this period. Because the
1986 Amendments to the Higher Educa­tion
Act raised loan limits, average debt
level is expected to be higher for those
graduating after 1986 (14).
Major sources of financial aid from
the U.S. Department of Education
include grants, loans, and work-study
opportunities. The Department publishes
a Student Guide (13) that describes each
type of financial aid in detail. Informa­tion
on Pell Grants, Supplemental
Educational Opportunity Grants, Perkins
Loans, College Work-Study, and
Stafford Loans is summarized in the
box on p. 26. In 1991, almost 10 million
recipients were awarded about $18 billion
in grants, loans, or work-study opportu­nities
(12) (table 3).
The number of students eligible to
receive Pell Grants in 1992 is expected
to exceed 4 million (6). The U.S.
Department of Education had estimated
3.7 million students would qualify. Over
$1 billion of additional funds will be
required to meet this demand.
7Debt level is the total amount of education loans
owed at the time of graduation.
1992 Vol. 5 No.4
Table 3. Major Federal student financial assistance programs- Number
of recipients and funds utilized, by type of programs, selected years
Program
Pell Grants
Number of recipients (thousands)
Funds used (million dollars)
Average grant (dollars)
Supplemental Educational
Opportunity Grants
Number of recipients
Funds used
Average grant
Perkins Loans 1
Number of recipients
Loan funds used2
Average loan
College Work-Study
Number of recipients
Funds used2
Average annual earnings
Stafford Loans3
Number of recipients
Loan funds used
Average loan
1980
2,858
2,387
835
716
368
513
813
694
853
819
660
806
2,904
6,200
2,135
1985
2,910
3,572
1,227
686
410
598
701
703
1,003
728
656
901
3,730
8,839
2,369
1991, est.
3,389
4,889
1,443
696
515
740
695
744
1,070
871
823
945
4,125
11,019
2,671
1Formerly National Direct Student Loans.
2yncludes institutional matching funds.
3Formerly guaranteed student loans. Beginning with 1985, data include activity under the PLUS (Parent
Loans for Undergraduate Students), FISL (Federally Insured Student Loans), and SLS (Supplemental
Loans for Students) programs.
Source: U.S. Department of Commerce, Bureau of the Census, 1991, Statistical Abstract of the United
States, 1991, [ 111 th ed.] from U.S. Department of Education, Office of Postsecondary Education,
unpublished data.
The 1986 Amendments to the Higher
Education Act provide for some flexibil­ity
in repaying student loans. Lenders
may offer graduated repayment schedules.
The Student Loan Marketing Association
(SLMA or Sallie Mae), which holds
1 in 3 outstanding student loans, has
offered a graduated repayment option
since 1988 (14). The principal advantage
to the borrower is that debt burden 8 will
decrease as incomes increase over time,
even though payments rise. Also, lenders
may consolidate multiple loans, restruc­ture
debt, and, if cumulative debt exceeds
$5,000, offer terms of 10 to 25 years for
repayment.
8Debt burden is the ratio of debt repayment to
gross income.
25
PeU Grant Program-provides funds to every eligible student; maximum award for the 1991-92 academic year was
$2,400. Eligibility is determined by a standard formula, passed into law by Congress, based on information reported on
the student aid application. Student must be attending school at least half time.
Supplemental Educational Opportunity Grants (SEOG)-<:ampus-based program administered by the financial aid
administrator at each participating school. For undergraduates with exceptional financial need; priority is given to Pell
Grant recipients. Maximum award is $4,000; however, each participating school receives a certain amount for each
campus-based program-when that money is gone, there are no more awards for that year.
College Work-Study (CWS)-this campus-based program provides jobs for undergraduate and graduate students who
need financial aid. Pay is at least the current Federal minimum wage. Jobs may be on or off campus, involving work in
the public interest or related to the applicant's course of study. Work schedule is established by the school.
Perkins Loans-a low-interest (5 percent) loan made through a school's financial aid office; therefore, a campus-based
program. The school is the lender, and the loan must be repaid. Maximum amounts are $4,500 for vocational programs
or the first 2 years of a program leading to a bachelor's degree; $9,000 (cumulative) for those who have achieved third
year status; $18,000 (cumulative) for graduate or professional study. Deferment or cancellation of repayment is the
decision of the school. Loans are cancelled upon death or total, permanent disability. Other circumstances can include
working as a Head Start, Peace Corps, or VISTA volunteer and, sometimes, as a teacher.
Stafford Loans--low-interest loans insured by the guarantee agency in each State, and also by the Federal Government.
The lender is usually a bank, credit union, or savings and loan association but may be the school. Interest rate for new
borrowers after July 1, 1988, is 8 percent for the first 4 years of repayment and 10 percent thereafter. Maximum amounts per
year are $2,625 for first- or second-year undergraduate study; $4,000 for those who have achieved third-year status; and
$7,500 for graduate students. Total debt for an undergraduate may not exceed $17,250; for graduate or professional
study, total debt (including undergraduate accumulated) may not exceed $54,750. There is a loan origination fee of 5 percent,
which helps reduce the Federal Government's cost of subsidizing these low-interest loans. The lender may charge an
insurance premium of up to 3 percent of the loan principal. Loans are cancelled upon death or total, permanent disability. In
some cases, as an enlistment incentive, the U.S. Department of Defense will repay part of a Stafford Loan. Only the
lender can grant deferment or cancellation.
Source: U.S. Department of Education, 1991- 92. The Student Guide. Financial Aid from the U.S. Department of Education:
Grants, Loans, and Work Study.
Graduates are granted a grace period­usually
6 months-before they must
begin repaying their student loans. In
addition, deferments are sometimes
available (14) if the borrower is:
• a volunteer in the Peace Corps,
VISTA, or comparable tax-exempt
organization-for up to 3 years.
• a full-time teacher in a shortage
area-up to 3 years.
• unemployed-up to 2 years.
• on parentalleave-6 months.
• a mother of preschool children
entering (or reentering) the work
force at wages within $1 of
minimum wage.
26
• enrolled in a graduate fellowship
or rehabilitation training program.
• in the military, the National Oceanic
and Atmospheric Administration
Corps, or a commissioned officer
in the Public Health Service-for
3 years.
• serving an internship required to
begin professional practice-up to
2 years.
• temporarily disabled, or caring
for a disabled dependent-up to
3 years.
Family Economics Review
References
1. Adelman, C. 1991. Women at Thirty Something: Paradoxes of Attainment. U.S.
Department of Education, Office of Educational Research and Improvement.
2. Fernandez, R. 1992. Fall Staff in Postsecondary Institutions, 1989. U.S. Department
of Education, Office of Educational Research and Improvement. NCES 92-223.
3. Gilmore, J.L. 1990. Price and Quality in Higher Education. U.S. Department of
Education, Office of Educational Research and Improvement.
4. Hoffman, C.M. 1991. Federal Support for Education: Fiscal Years 1980 to 1991.
U.S. Department of Education, Office of Educational Research and Improvement.
NCES 92-641.
5. Johnson, F.H. and Bobbitt, S.A. 1991. Public and Private Elementary and Secondary
Education Statistics: School Year 1991-92. (Early Estimates). U.S. Department of
Education, Office of Educational Research and Improvement. NCES 92-032.
6. Jordan, M. 1992. U.S. wrong on college aid estimate. The Washington Post. May 22
issue.
7. Keough, K. 1991. Current Funds Revenues and Expenditures of Institutions of Higher
Education: Fiscal Years 1980-88. U.S. Department of Education, Office of Educational
Research and Improvement. NCES 91-219.
8. Kominski, R. 1990. What's It Worth? Educational Background and Economic Status:
Spring 1987. Current Population Reports, Household Economic Studies. Series P-70,
No. 21. U.S. Department of Commerce, Bureau of the Census.
9. Kaminski, R. and Adams, A. 1992. Educational Attainment in the United States:
March 1991 and 1990. Current Population Reports, Population Characteristics. Series
P-20, No. 462. U.S. Department of Commerce, Bureau of the Census.
I 0. Kaminski, R. and Adams, A. 1992. School Enrollment-Social and Economic
Characteristics of Students: October 1990. Cun·ent Population Reports, Population
Characteristics. Series P-20, No. 460. U.S. Department of Commerce, Bureau of the Census.
11. Pluta, M.J. 1991. National Higher Education Statistics: Fall1991. (Early Estimates).
U.S. Department of Education, Office of Educational Research and Improvement.
NCES 92-038.
12. U.S. Department of Commerce, Bureau of the Census. 1991. Statistical Abstract of
the United States, 1991. [ 111 th ed.]
13. U.S. Department of Education. 1991. The Student Guide. Financial Aid from the
U.S. Department of Education: Grants, Loans, and Work-Study.
14. U.S. Department of Education, Office of Planning, Budget, and Evaluation. Debt
Burden Facing College Graduates. Prepared under contract with Decisions Resources
Corporation and Westat,lnc.
15. U.S. Department of Education, Office of Planning, Budget, and Evaluation. 1990.
The Escalating Costs of Higher Education. Prepared under contract with Pelavin
Associates, Inc.
16. U.S. Department of Education, Office of Educational Research and Improvement.
1992. American Education at a Glance. NCES 92-696.
17. U.S. Department of Education, Office of Educational Research and Improvement.
1991. Projections of Education Statistics to 2001. NCES 91-685.
18. U.S. Department of Education, Office of Educational Research and Improvement.
1990. American Education at a Glance. NCES 90-655.
1992 Vol. 5 No. 4 27
28
Research Summaries •
Age at Retirement
The purpose of this study was to deter­mine
the level, direction, and rate of
change in the average retirement age
of men and women in the United States
since the 1950's. Two measures were
used to provide a national time series of
average ages at retirement over several
decades, comparable for both men and
women. The first measure, based on
administrative records of the Social
Security Administration, was the annual
mean age of persons receiving initial
awards of retirement benefits. The
second measure, based on the monthly
Current Population Survey, 1 was the
labor force participation rates for every
fifth year between 1950 and 1990, and
projections for 1995 through 2005.
These rates were for 5-year age categories
from ages 45-49 years to age 75 and
over.
In 1950, the mean age of men awarded
Social Security retirement benefits was
68.7 years (table 1). By 1989, the mean
had fallen to 63.7 years. The decline
was almost as great for women, from a
mean age of 68.0 years in 1950 to 63.4
years in 1989. Most of the decline had
taken place by 1970. Age 62 is the
youngest age at which one can collect
Social Security retirement benefits.
Before 1961 for men and before 1956
for women, the minimum age was 65.
Among people awarded Social Security
retirement benefits in 1989, nearly half
of the men and about three-fifths of the
women began receiving their benefits at
age 62.
In 1950, about 60 percent of the labor
force was covered under the Social
Security retirement system. This propor­tion
grew to over 90 percent by 1989.
1The Current Population Survey (CPS), conducted
by the U.S. Bureau of the Census under contract
to the Bureau of Labor Statistics, is a monthly
survey of some 60,000 households, selected to
represent the U.S. population 16 years of age and
over.
Table 1. Mean age of persons
initially awarded Social Security
retirement benefits by sex,
1950-89
Age
Year Men Women
1950 68.7 68.0
1955 68.4 67.8
1960 66.8 65.2
1965 65.8 66.2
1970 64.4 63.9
1975 64.0 63.7
1980 63.9 63.5
1985 63.7 63.4
1989 63.7 63.4
Source: Social Security Bulletin, Annual Statistical
Supplement, 1990, Social Security Administration,
1990, p. 236, table 6B5.
This suggests a risk of bias in the early
data in terms of representing the average
age of retirement of the entire U.S.
labor force.
In 1950, 25 percent of the work force
was covered by private or government
pension plans. By 1988, the proportion
had increased to 46 percent. Although
many people who receive pensions are
also covered by Social Security, age at
first receipt of an employment-provided
pension may differ from age at first
receipt of Social S.ecurity retirement
benefits. There is no data set available
that combines the two types of benefits
to give the age at first receipt of either
benefit.
Labor force participation rates for men
ages 45-49 through 75 years and over
declined at every age category between
1950 and 1990 (table 2). The declines
were greater for all age groups 60 years
and over than for age groups 45-49
years through 55-59 years. The older
the age group, the greater the propor­tional
decline in participation rates.
Family Economics Review
Table 2. Labor force participation rates for people ages 45 to 49 through 75 years or older, by sex,
selected years, 1950-2005
Sex and year 45 to 49 50 to 54 55 to 59 70 to 74
years years years years
Men
1950 96.5 95.0 89.9 43.2
1955 97.1 95.7 92.5 37.1
1960 96.9 94.7 91.6 31.6
1965 96.1 95.0 90.2 24.8
1970 95.3 93.0 89.5 25.2
1975 94.1 90.1 84.4 21.1
1980 93.2 89.2 81.7 28.5 17.9
1985 93.3 88.6 79.6 24.5 14.9
1990 92.3 88.8 79.8 26.0 15.4
Projected1
1995 92.0 88.8 79.4 I·_., 26.6 15.4
2000 91.8 89.0 79.2 '27.3 15.6
2005 91.6 88.8 78.8 27.9 15.5
Women
1950 39.9 35.7 29.7 15.5 7.9
1955 45.8 41.5 35.6 17.8 9.2
1960 50.7 48.7 42.2 31.4 17.6 9.5
1965 51.7 50.1 47.1 34.0 17.4 9.1
1970 55.0 53.8 49.0 '17.3 9.1
1975 55.9 53.3 47.9 14.5 7.6
1980 62.1 57.8 48.5 15.1 7.5
1985 67.8 60.8 50.3 13.5 7.6
1990 74.8 66.9 55.3 17.0 8.2
Projected1
1995 79.1 71.0 58.4 18.2 8.4
2000 82.7 74.8 61.9 19.7 8.5
2005 85.1 77.6 64.5 20.7 8.5
1Projected rates are unpublished 1991 middle-scenario estimates from the Bureau of Labor Statistics economic projections program.
Source: Gendell, M. and Siegel, J.S., 1992, Trends in retirement age by sex, 1950-2005, Monthly Labor Review 115(7):22-29.
1992 Vol. 5 No.4
75 years
and over
21.3
19.4
17.5
14.1
12.0
10.1
8.8
7.0
7.1
7.4
7.3
7.2
3.2
4.0
4.4
3.7
3.4
3.0
2.5
2.2
2.7
2.5
2.7
2.6
29
Table 3. Median age at retirement
by sex, 1950-55 to 2000-05 '
Age
Period Men Women
1950-55 66.9 67.7
1955-60 65.8 66.2
1960-65 65.2 64.6
1965-70 64.2 64.2
1970-75 63.4 63.0
1975-80 63.0 63.2
1980-85 62.8 62.7
1985-90 62.6 62.8
1990-951 62.7 62.6
1995-20002 62.3 62.0
2000-052 61.7 61.2
I
2
Based on 1990 actual and 1995 projected data.
Based on projected data.
Source: Estimates were calculated from 5-year
age-specific labor force data obtained in the
Current Population Survey and life-table survival
ratios.
Projections for labor force participation
rates for 1995 through 2005 for men
indicate little fluctuation from 1990
levels.
Contrary to the pattern for men, the
labor force participation rates for women
in each 5-year age group from 45-59
years increased about 87 percent from
1950 to 1990. The rates for women over
age 60 rose steadily between 1950 and
1970, then declined slightly until 1990.
Projections for labor force participation
rates for 1995 through 2005 for women
indkate increases for all but the oldest
age group (age 75 and over).
From the early 1950's to the late
1980's, median age at retirement fell
from 66.9 years to 62.6 years for men
and from 67.7 years to 62.8 years
among women (table 3). Projections
30
for 1995 through 2005 indicate a further
decrease in median age at retirement for
both sexes.
Each of the two measures of retirement
age used in this study has a number of
shortcomings, although they tend to
compensate for each other. The Social
Security measure does not cover pen­sions
provided in the private sector and
by the civil and military services; the
labor force measure does. Minimum
age at initial receipt of Social Security
benefits is currently 62 years; for the
labor force measure, the age is often
younger-therefore, it is not subject to
the upward bias of the Social Security
measure. Coverage by Social Security
was less widespread in the 1940's and
1950's, so data may not be representative.
The Social Security measure is a
direct measure based on administrative
records for persons age 62 and over; the
labor force measure is an approximation
because there is no way to determine
whether the labor force withdrawal is
permanent. Further research should
focus on how close: (I) the average
ag: at initial receipt of Social Security
ret_Ir:~ent benefits is to the average age
at Imtial receipt of any pension; and
(2) the net withdrawal rate is to the rate
of permanent withdrawal from the labor
force.
A decline in the average age at retire­ment
and a gain in longevity tend to
raise the economic dependency burden
the elderly place on younger cohorts
still in the labor force. This tends to
make increases in per capita income
harder to achieve, even as the cost of
income transfers to the elderly rise.
Whether it is desirable and feasible to
r~verse the decline in retirement age,
~1ven continued population aging and
mcreases in life expectancy, is an issue
that should be addressed.
Source: Gendell, M. and Siegel, J.S., 1992, Trends
m reurement age by sex, 1950-2005, Monthly
Labor Review 115(7):22-29.
• The 1991
Deceleration
in Inflation
The 3.1-percent rise in the Consumer
Price Index for All Urban Consumers
(CPI-U) in 1991 was the lowest rate of
increase since 1986. Although sluggish
economic conditions tended to dampen
inflation, developments for energy and
food were major factors in the general
slowing of consumer price increases.
This deceleration, however, does not
necessarily translate into a long-term
drop in the underlying rate of inflation.
Because the acceleration of inflation
in 1990 was due primarily to a sharp
in~rease in petroleum-based energy
pnces, the moderation in 1991 was
caused largely by a decline in these
prices. The oil shortage anticipated
during the hostilities in the Middle East
never materialized. As prices on world
oil markets soared, other oil-producing
countries quickly increased production
to compensate for the loss of Iraqi and
Kuwaiti oil. With increasingly reliable
and ample oil supplies, energy prices
started to fall.
In 1991, the prices for energy commodities
fell 16.1 percent, after rising 35.4 per­cent
in 1990. Except for 1986, when
energy commodity prices dropped 30.5
percent, the 1991 decline was the steepest
annual decline since 1957.
Food prices rose 1.9 percent in 1991,
compared with 5.3 percent in the
previous year, their smallest annual
increase since 1976. Prices for beef and
veal, pork, and eggs declined, whereas
prices for fish and seafood, fruits and
vegetables, and dairy products rose
slightly. Prices for food away from
home rose 2. 9 percent in 1991, their
smallest advance since 1964.
Family Economics Review
Annual percent change in the Consumer Price Index for All Urban Consumers (CPI-U), selected
expenditure categories, 1982-91
Expenditure Percent change for 12 months ended December
category 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
All items 3.8 3.8 3.9 3.8 1.1 4.4 4.4 4.6 6.1 3.1
All items less energy 4.2 4.5 4.4 4.0 3.8 4.1 4.7 4.6 5.2 3.9
All items less food
and energy 4.5 4.8 4.7 4.3 3.8 4.2 4.7 4.4 5.2 4.4
Energy 1.3 -0.5 0.2 1.8 -19.7 8.2 0.5 5.1 18.1 -7.4
Energy commodities -5.0 -3.2 -1.8 3.4 -30.5 17.8 -2.3 7.9 35.4 -16.1
Motor fuel -6.5 -1.7 -2.4 3.1 -30.7 18.7 -2.1 6.8 36.5 -16.0
Fuel oil -0.7 -10.8 0 5.4 -33.3 17.9 -6.3 19.5 29.9 -19.9
Energy services 14.1 4.1 3.5 -0.6 -3.3 0.2 3.2 2.8 1.5 3.5
Food 3.1 2.7 3.8 2.6 3.8 3.5 5.2 5.6 5.3 1.9
Shelter 2.4 4.7 5.2 6.0 4.6 4.8 4.5 4.9 5.2 3.9
Medical care 11.0 6.4 6.1 6.8 7.7 5.8 6.9 8.5 9.6 7.9
Apparel and upkeep 1.6 2.9 2.0 2.8 0.9 4.8 4.7 1.0 5.1 3.4
College tuition 12.5 9.6 10.1 8.6 7.4 7.0 7.7 8.1 8.2 12.1
Alcoholic beverages 4.0 3.4 2.7 5.5 2.0 3.3 3.9 4.8 4.2 9.9
Tobacco products 20.0 10.1 5.0 7.2 5.9 7.9 9.4 14.7 10.8 11.1
Note: Data are not seasonally adjusted.
Source: Stewart, K.J., 1992, Energy, food prices helped slow inflation in 1991, Monthly Labor Review I 1 5(5):3-5.
The index for all items excluding food
and energy increased 4.4 percent in
1991, compared with 5.2 percent in
1990. Prices for most CPI components
within this category, such as shelter,
apparel, and medical care, also
advanced at slower rates in 1991.
In 1991, residential rent rose 2.9 percent
and homeowners' costs were up 3.7 per­cent,
their smallest annual rise since
1968 and 1983, respectively. However,
charges for some household goods and
services, such as refuse collection,
postal rates, and water and sewerage
maintenance, accelerated in 1991 .
1992 Vol. 5 No. 4
Medical care costs, which have out­paced
the overall inflation rate every
year since 1980, continued that trend in
1991, increasing 7.9 percent. However,
the advance was less than the 9.6-percent
rise in the previous year. Prices for
physicians' services also rose at a slower
rate in 1991.
Prices for apparel and upkeep advanced
3.4 percent in 1991, compared with 5.1
percent in 1990. Prices for alcoholic
beverages increased 9.9 percent, the
largest rise since 1974. Prices for
tobacco and smoking products rose
about the same-11.1 percent in 1991
and 10.8 percent in 1990. College
tuition, which had increased between
7.0 and 8.6 percent each year since
1985, rose 12.1 percent in 1991. This
represents its sharpest rise since 1982.
Source: Stewart, K.J., 1992, Energy, food prices
helped slow inflation in 1991 , Monthly Labor
Review 115(5):3-5.
31
• Workers With
Low Earnings:
1964 to 1990
The economic well-being of most
people in the United States depends on
their own earnings or on the earnings
of other family members. Wage rates
have a direct effect on living standards
and can affect labor force and social
behavior. Declining wage rates can be
a source of economic and social stress.
The Bureau of Labor Statistics and the
Bureau of the Census regularly provide
information on levels and trends in
average or median earnings. Several
studies have pointed to recent increases
in earnings inequality and in the number
of workers with low earnings.
Data from the March supplements to
the Current Population Surveys (CPS)
ofl965, 1970,1975,1980,1985,1990,
and 1991 were used to provide addi­tional
information on: The number of
workers with low earnings, changes over
time in the prevalence of low earnings,
and the characteristics of workers with
low earnings. Over the past decade, the
likelihood that a year-round, full-time
worker would have low annual earnings
increased.
The concept of year-round, full-time
attachment was developed especially
for this study. The category includes
people who spent at least 50 weeks
during the year at work or looking for
work and who either worked 35 hours
a week or more or worked fewer hours
for nonvoluntary reasons. Within each
of these categories, workers are classi­fied
as having low earnings if their
annual earnings are less than the poverty
level for a four-person family. The
March supplement to the CPS defines
32
earnings as money compensation before
any deductions. The changes in low
earnings thresholds over time reflect
price movements.
Even if the income of the worker remains
above the poverty threshold, low wages
may make it difficult to pay for basic
commodities such as housing, education,
and medical care. For some workers,
the prospect of low wages may lead to
a decision to stay out of the labor force
if other sources of income, such as assis­tance
payments, are available. For others,
low wages may lead to increased hours
of work. In addition, low wages affect
social behavior in terms of affording
marriage, having children, and estab­lishing
an independent household.
In 1964, nearly one-fourth of the
Nation's year-round, full-time workers
had low annual earnings. The difference
between the sexes was large; the rate
among males was 16 percent and the
rate among females was 45 percent. By
1974, the rate declined to 7 percent for
men and 22 percent for women. From
1974 to 1979, the prevalence of low
earnings among females declined
further, while the rate among men did
not change significantly. The recent
rise in the incidence of low earnings
dates from 1979. Over the 1979 to 1990
Table 1. Year-round, full-time workers with low annual earnings,
by age and sex: 1979, 1984, and 1990
Characteristics
Both sexes (years)
18-64
18-24
25-34
35-54
55-64
65 and over
Males
18-64
18-24
25-34
35-54
55-64
65 and over
Females
18-64
18-24
25-34
35-54
55-64
65 and over
1979
11.6
22.9
8.8
9.9
12.0
28.9
7.3
18.1
5.7
5.3
7.3
25.5
20.0
29.4
14.8
19.5
21.7
36.8
1984
14.2
33.4
11.9
11.4
13.6
32.1
10.1
29.8
9.1
7.0
8.9
26.5
21.0
37.7
16.4
19.1
22.3
45.4
1990
17.8
43.4
18.4
13.2
16.4
28.8
13.6
39.7
14.9
8.9
11.7
26.5
24.1
48.1
23.8
19.6
24.8
33.2
Source: U.S. Department of Commerce, Bureau of the Census, /992, Workers With Low Earnings: 1964
to 1990, Current Population Reports, Consumer income, Series P-60, No. 178.
Family Economics Review
Table 2. Year-round, full-time
workers with low annual earnings,
by sex, race, Hispanic origin,
household relationship, and
education
Characteristics
Males
White
Black
Hispanic origin 1
Females
White
Black
Hispanic origin
Household relationship
Married-couple family
Husband
Wife
Related child
Female-headed family
Female head
Other family member
Unrelated individual
Male
Female
Education
White
1990
13.0
22.4
28.2
23.6
28.5
37.0
9.1
22.7
37.9
23.4
28.5
17.4
20.2
Less than 12 years 35.4
12 years 20.4
13 years and over 10.1
Black
Less than 12 years 40.1
12 years 29.5
13 years and over 14.5
Hispanic origin
Less than 12 years 48.3
12 years 27.8
13 years and over 14.3
1Persons of Hispanic origin may be of any race.
Source: U.S. Department of Commerce, Bureau
of the Census, 1992, Workers With Low Earnings:
1964 to 1990, Current Population Reports,
Consumer Income, Series P-60, No. 178.
1992 Vol. 5 No.4
period, the rate among men rose from
8 percent to 14 percent, the rate among
women rose from 20 percent to 24 per­cent,
and the overall rate rose from 12
percent to 18 percent. The 1990 figure
of 14.4 million year-round, full-time
workers with low annual earnings was
higher than the figure for any of the
other years included in this study.
However, the growth in the absolute
number reflects, in part, the growth in
the number of workers. Changes in
the prevalence of low earnings are
apparently caused by structural or long­term
factors rather than cyclical factors.
The likelihood of receiving low earnings
has increased since 1979 for all age
groups below age 65 (table 1). In 1990,
year-round, full-time workers between
the ages of 18 and 24 had the highest
rate--43 percent received low earnings.
The lowest rate-13 percent-was
reported by those between the ages of
35 and 54.
In 1990, among workers classified by
race, ethnicity, and sex, White males
had the lowest probability of receiving
low annual earnings, whereas Hispanic
females had the highest probability
(table 2). When classified by household
composition, husbands in married­couple
families had the smallest likeli­hood
of receiving low annual earnings.
The proportion of year-round, full-time
workers with low annual earnings is
strongly influenced by educational
attainment. In 1990, this proportion
ranged from 10 percent for those with
13 or more years of schooling to 36
percent for those with less than 12 years
(not shown). There were some differ­ences
among race and ethnic groups
within the education categories: In
1990, Hispanic and Black high school
graduates had a higher likelihood of
having low earnings than White high
school graduates.
Most year-round, full-time workers with
low annual earnings are not in poverty.
A worker with low earnings will not be
in poverty if the worker's total family
income exceeds the poverty threshold.
In 1990, the poverty rate among workers
16 to 64 years of age with low earnings
was 13 percent, compared with 27 per­cent
in 1964. The likelihood of a worker
with low earnings being in poverty
varies somewhat by family relationship.
In 1990, 21 percent of husbands with
low earnings but only 6 percent of wives
with low earnings were in poverty.
The difference reflects the greater labor
force attachment of husbands. Unmarried
women with low earnings were more
likely to be in poverty than wives with
low earnings.
Source: U.S. Department of Commerce, Bureau
of the Census, 1992, Workers With Low Earnings:
1964 to 1990, Current Population Reports,
Consumer Income, Series P-60, No. 178.
33
34
Regular Items • Charts From Federal Data Sources
Distribution of average annual expenditures by selected
characteristics, 1990
Age of householder
All consumer units
Under25
25-34
35-44
45-54
55-64
65-74
75 and over
Family type
All consumer units
Husband and wife only
Oldest child under 6
Oldest child 6 to 17
Oldest child 18 or over
One parent, at least one
child under 18
Single person and other
consumer units
Family Economics Review
Income
All complete income reporters
$15,000 to $19,999
$30,000 to $39,999
$50,000 and over
Housing tenure, race, and urbanization
All consumer units
Homeowner
Renter
White and other
Black
Urban
Rural
Source: U.S. Department of Labor, Bureau of Labor Statistics, 1990, Consumer Expenditure Survey.
1992 Vol. 5 No.4
• Housing
• Transportation
•Food
• Pensions and Social Security
Apparel and services
Health care
• Other
35
• Recent Legislation Affecting Families
Public Law 102-295 (enacted May 28,
1992)-the Child Abuse, Domestic
Violence, Adoption and Family Services
Act of 1992 authorizes funds through
1995 for programs dealing with child
abuse and neglect, adoption and care
of children with disabilities, and the
prevention of family violence. The bill
funds the following:
• the U.S. Advisory Board on Child
Abuse and Neglect;
• State Grants Program to support and
improve State Child Protective Service
(CPS) systems;
• Community-Based Prevention Grants
that focus prevention challenge
grants to support community-based
programs to assist State children's
trust funds in funding local child
abuse and neglect prevention activities;
• preventive services for children of
homeless families or families at risk
of homelessness;
• Child Abuse Treatment Improvement
Grants and the establishment of a new
program of grants to State and local
agencies for treatment services to
abused and neglected children in
out-of-home care designed to promote
reunification with their families;
• emergency child abuse prevention
grants under the CPS, particularly
for children affected by family
members who are drug abusers;
• temporary child care and crisis nurseries
grants to provide respite care for
families of children with disabilities;
• expansion of the State Grant Program
to focus on programs that serve the
victims of family violence and their
children;
• grants to at least 10 States for the
purpose of developing model methods
to improve the criminal justice system's
response to domestic violence;
36
• research into areas that include the
effectiveness of safety provisions and
family violence victim support as
ways to eliminate child abuse, and
identification of successful child
abuse intervention services where
both mother and child are abused;
• establishment of a National Clearing­house
on Domestic Violence.
The bill outlines the components of the
Core Grant Program, an adoption educa­tion
and training program, the distribu­tion
of training materials on adoption,
and the Minority Placement Program,
which seeks to increase the number of
minority children placed into adoptive
families. The bill also provides funds
for postlegal adoption services for
families who have adopted special­needs
children.
Public Law 102-314 (enacted July 2,
1992)-The WIC Farmers' Market
Nutrition Act of 1992 authorizes grants
to State programs designed to provide
coupons that may be exchanged for
fresh, nutritious, unprepared foods­such
as fruits and vegetables-at
farmers' markets. Women, infants, and
children who participate in the WIC
program and are nutritionally at risk are
intended recipients. Additional grants
will be made to expand the awareness
and use of farmers' markets and increase
sales at such markets. Grants will be
awarded only to States that agree to
provide State, local, or private funds for
the program in an amount equal to not
less than 30 percent of the total cost of
the program. The coupon issuance
process will be designed to ensure that
coupons are targeted to areas with the
highest concentration of eligible indi­viduals
and the greatest access to farmers'
markets. The coupons may be redeemed
only by producers authorized by the
State to participate in the program.
Public Law 102-318 (enacted July 3,
1992)-extends the Emergency
Unemployment Compensation Program
through March 6, 1993. The bill was
signed 1 day before a July 4 deadline,
when workers who had used up their
26 weeks of State benefits would no
longer be eligible for Federal emergency
benefits. The bill would cost $5.5 billion
over 6 years, providing unemployed
workers in 15 States with 26 extra
weeks of benefits and workers in all
other States and the District of Columbia
with 20 extra weeks. Workers who
have already exhausted their Federal
emergency benefits are not eligible for
more. The bill includes a permanent
change to the unemployment system,
beginning March 7, 1993, which will
allow States to release funds based on
the total unemployment rate, not just
those who qualify for unemployment
benefits as is currently the case. As a
result, it is expected that Congress will
no longer have to vote for emergency
benefits.
To pay for the law, three financing
provisions were included. Collection
of taxes from large corporations that
estimate their tax payments on a quar­terly
basis will be accelerated, a change
that would bring in $800 million.
The phase-out of personal exemptions
for upper-income taxpayers will be
extended, a provision that would raise
$2.7 billion. Finally, pension plan distri­butions
that are not rolled over directly
to an Individual Retirement Account
will be taxed at 20 percent. This measure
would raise $2.1 billion.
Family Economics Review
• Data Sources
Vital Statistics- Natality,
Mortality, Marriage, Divorce
Sponsoring agency: U.S. Department
of Health and Human Services
Population covered: All births, deaths,
marriages, and divorces occurring in the
United States
Sample size: Variable
Geographic distribution: Nationwide
for births and deaths; States where
marriage and divorce statistics are
available.
Years data collected: 1968 to present.
The 1989 data should be available for
public use in 1993.
Method of data collection: Certificates
of births, deaths, marriages, and divorces
National Household Education
Survey (NHES)
Sponsoring agency: U.S. Department
of Education
Population covered: U.S. noninstitu­tionalized
civilian population with
telephones
Sample size: The initial Household
Screener Survey consisted of 60,300
households. From this sample, 14,000
households with at least one child
between 3 and 8 years old were selected
for the Early Childhood Education
Survey, and 12,570 adults were
interviewed.
Geographic distribution: Nationwide
Years data collected: 1991
1992 Vol. 5 No.4
Future surveys planned: Ongoing
Major variables: Natality. Mother's
residence, age of father and mother,
birth date and weight, education of
parents, marital status of parents, number
of prenatal visits, place of birth, race
and sex of child, last pregnancy and
outcome, and birth order. Mortality.
Residence of decedent, age at death,
sex, marital status, race, cause of death,
autopsy performed or not, and State of
birth. Marriage. Bride's and groom's
ages, race, State of residence, marital
status, interval from last marriage to
present marriage, and number of this
marriage. Divorce. Husband's and wife's
ages at marriage and at separation, race,
date of marriage, duration of marriage,
number of children under 18, number of
living children, custody, and number of
previous marriages ending in death or
divorce.
Method of data collection: Random
digit dialing and computer assisted
telephone interviewing
Future surveys planned: Annually
beginning in 1993, except the Adult
Education Survey will only be conducted
every 3 years.
Major variables: Household Screener
Survey. Household characteristics and
demographics; education participation
and attainment; and preschool and adult
education. Early Childhood Education
Survey. Children's experiences in home­based
care, center-based care, at home,
and at school. Adult Education Survey.
Participation in educational activities
over the previous 12-month period,
including on-the-job training, but
excluding full-time attendance in
elementary or secondary school.
Source for further information and
data: Reports are published in Vital
and Health Statistics, Series 20 and
21; supplements to the Monthly Vital
Statistics Report; and Vital Statistics
of the United States, Volumes I, II,
and III; or contact:
Scientific and Technical Information
Branch
National Center for Health Statistics
Presidential Building
6525 Belcrest Road, Room 1064
Hyattsville, MD 20782
(301) 436-8500
Data tapes are available from:
National Technical Information Service
5285 Port Royal Road
Springfield, VA 22161
(703) 487-4650 .
Source for further information and
data: Reports are available from:
U.S. Department of Education
National Center for Education Statistics
555 New Jersey A venue, NW
Washington, DC 20208-5725
Data tapes are available from:
U.S. Department of Education
Data Systems Branch
555 New Jersey A venue, NW
Washington, DC 20208-5725
(202) 219-1847/1522
Four data files are available: Preprimary
file for children not enrolled in kinder­garten;
Primary file for children in
grades I and above; Adult file for
adults who participated in education
activities; and a Course file for each
part-time course reported. For more
information on NHES contact:
(202) 219-1574 or (202) 219-1767.
37
• Journal Abstracts and Book Summary
The following abstracts are reprinted as they appear in the cited source.
Atkinson, A.M. 1992. Stress levels of
family day care providers, mothers
employed outside the home, and mothers
at home. Journal of Marriage and the
Family 54(2):379-386.
Individual and family variables were
compared between mothers who are
family day care providers, mothers
employed outside the home, and mothers
not employed. The study uses data from
telephone interviews with a random
sample of 918 mothers of young children.
Significant differences were found for
mothers' level of stress, education,
income, and work hours; for husbands'
income, work hours, and time spent
actively involved with children; and for
number of children. Providers' stress
may be influenced by high demands
and limited resources from their family
situation as well as employment.
Sources of stress should be considered
when creating family day care training
and support programs.
Churaman, C.V.1992. Financing of
college education by single-parent and
two-parent families. Journal of Family
and Economic Issues 13(1):95-113.
The financing of college education by
male and female single-parent families
and two-parent families is compared.
Female single parents are at a significant
disadvantage in being able to accumu­late
funds, but this is partially offset by
financial aid. Variables accounting for
significant variation in the parents' con­tribution
to student education expenses
are: public versus private school, finan­cial
aid, parents' saving behavior,
students' contribution, race, and family
type. The amount of parental contribu­tion
is positively correlated with parent
net worth, family per capita income,
and total student cost; it is negatively
correlated with age of the student.
38
Coughlin, T.A., Liu, K., and McBride,
T.D. 1992. Severely disabled elderly
persons with financially catastrophic
health care expenses: Sources and
determinants. The Gerontologist
32(3):391-403.
This article describes the sources of
financially catastrophic health care
expenses among disabled elderly persons.
Using a cost-to-income approach and
data from the 1981-1982 Channeling
Demonstration project, we examined
the types of health care costs (hospital,
physician and ancillary care, nursing
home, and prescription medicine) that
contributed to overall expenses. For
the Channeling sample, out-of-pocket
expenses for prescription medicines and
for nursing home care were the principle
[sic] source of catastrophic expenses.
Prasad, V.K. and Javalgi, R.G. 1992.
Understanding needs and concerns
of the elderly regarding Medicare
Health Maintenance Organizations.
The Journal of Consumer Affairs
26(1):47-68.
Medicare beneficiaries, who currently
receive health care under a fee-for­service
system, present new challenges
and opportunities for Medicare-HMOs.
Part of the challenge lies in discerning
major need dimensions underlying the
elderly's choice between standard
Medicare and a Medicare-HMO.
Although Medicare-HMOs have special
features likely to be particularly benefi­cial
to the elderly, they are not greeted
without some disquietude. The paper
focuses on identifying the major need
dimensions and concerns of the elderly
in choosing a Medicare-HMO over the
traditional fee-for-service Medicare
system.
Magrabi, F.M., Chung, Y.S., Cba,
S.S., and Yang, S-J. 1991. The
Economics of Household Consumption.
Praeger Publishers, New York.
This book provides an overview of
concepts, theories, and methods
related to the study of household
consumption. It summarizes the most
recent data on consumption patterns
and trends, together with factors that
influence consumption-population
trends, prices, and distribution of
resources-and examines bow
consumption data are used by business,
government, and other organizations.
The purpose of the work is to give the
student an understanding of household
consumption patterns, including re­cent
trends in the United States and
worldwide, as well as applications to
questions of public policy.
Frances M. Magrabi is a professor
of consumption economics in the
Consumer Sciences Division of the
School of Human Resources and
Family Studies, University of Illinois
at Urbana-Champaign.
Young Sook Chung, Sanghee Sohn
Cha, and Se-Jeong Yang received
Ph.D. degrees from the University of
Illinois at Urbana-Champaign.
Family Economics Review
• Cost of Food at Home
Cost of food at home estimated for food plans at four cost levels, September 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 ....... . .........•. $49.60 $62.50 $76.90 $95.40 $214.70 $270.70 $333.10 $413.40
51 years and over .. . ....... . .... 47.00 60.00 73.80 88.30 203.20 259.90 320.00 382.50
Family of4:
Couple, 20 - 50 years
and children-
1 - 2 and 3 - 5 years ............ 72.40 90.20 110.10 135.00 313.40 391 .00 476.70 585.20
6 - 8 and 9 - 11 years ...... .. . . . 83.00 106.10 132.30 159.20 359.20 459.60 573.20 689.70
INDIVIDUALS3
Child:
1 - 2 years ................ . .... 13.20 16.00 18.70 22.60 57.00 69.40 80.90 98.00
3- 5 years ..... . ... . .... . . •.... 14.10 17.40 21.50 25.70 61.20 75.50 93.00 111.40
6-8 years .......... . .......... 17.30 23.10 28.80 33.60 74.90 99.90 124.90 145.40
9- 11 years ....... . . ... ... .. ... 20.60 26.20 33.60 38.90 89.10 113.60 145.50 168.50
Male:
12 - 14 years ..... . .... . ....... . 21.30 29.60 37.00 43.30 92.40 128.50 160.10 187.80
15 - 19 years ..... . .. ... . ...... . 22.10 30.60 38.00 44.00 95.90 132.60 164.70 190.80
20 - 50 years .... .... . .. .. ..... . 23.70 30.30 37.70 45.60 102.60 131.20 163.40 197.80
51 years and over ..... .. •. ...... 21.50 28.70 35.30 42.30 93.00 124.50 153.10 183.30
Female:
12 - 19 years .......... . ........ 21.50 25.60 31.00 37.50 93.10 111 .10 134.50 162.50
20 - 50 years . . . ..... .. . .. ...... 21.40 26.50 32.20 41.10 92.60 114.90 139.40 178.00
51 years and over ............... 21 .10 25.80 31.80 38.00 91 .70 111.80 137.80 164.40
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.
~he 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 10 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.4 39
•
Consumer Prices
Consumer Price Index for all urban consumers [1982-84 = 1 00]
Group
All items .......................... . ... . .. . ...... .
Food ......... . ..... ... ... . ..... . ... . .. . . .... ·.
Food at home .. . .. .... ... .. . .. . .. .. . . .. .. . ... .
Food away from home . ...... .. ..... . . .... . ... . .
Housing ... . ... . ........... . ....... . ... .. . .. .. .
Shelter ... . .................. . .... . .......... .
Renters' costs 1
.......... •... ..• . . . . ... . .. •...
Homeowners' costs 1
..... . . ... .... .. .. .. ..... .
Household insurance 1
...... . . . ... . ..... .. .• .
Maintenance and repairs ... . . .. . . . . . . . .. .. . . . . .
Maintenance and repair services . .... . . .. .. . .. .
Maintenance and repair commodities . ......... .
Fuel and other utilities ................... . . . .. . . .
Fuel oil and other household fuel commodities ... .. .
Gas (piped) and electricity . . ... . . . ... .. . . . . .... .
Household furn ishings and operation . .. .. .. . .• . .• ..
Housefurnishings .. .. ..... . . .. . . ... .. . .... . . . .
Housekeeping supplies . . ............ ..... .. .. .
Housekeeping services .... . .... . .. .. .. . .... .. .
Apparel and upkeep .................. . ........ .. .
Apparel commodities ......... ... . ... .. . ..... . . .
Men's and boys' apparel .. .. . .. . . .. . .... . . . ... .
Women's and girls' apparel .. . . .....•..•. . ... . ..
Infants' and toddlers' apparel. . . .. .. ........ . ... .
Footwear ........... . ....... ... . .. .... ..... .
Apparel services .. . .... . ...................... .
Transportation ..... . .... . ...... . ....•........ . ..
Private transportation ...•.. . ... . ... .. . .. ...... . .
New vehicles . . . ......... .. ... ... . . .. . . .. . .. .
Used cars .. .. .............. .. . . .. . . . ... . ... .
Motor fuel. .. . .... . ... . .. . . . ..... ..... .... .. .
Automobile maintenance and repair .. . ..... .. ... .
Other private transportation ... . ................ .
Other private transportation commodities ....... .
Other private transportation services ...... . .. . . .
Public transportation .... . .. . ... . .... . . .. .. . . . .. .
Medical care .......... . .... ..... . . •...... . .• . ...
Medical care commodities ........ . ........... . . .
Medical care services ............... .. . ... .. . . . .
Professional medical services . .......... . ...... .
Entertainment .............. . .... . .•........ . .. . .
Entertainment commodities . ...... .. ... .. .. . . .. . .
Entertainment services ..... . ........ . ... . ... .. . .
Other goods and services . .. .. . .. .... . ..... . . .. . . •.
Personal care .... . ................... . ..... . •.
Toilet goods and personal care appliances ....•. ...
Personal care services ........................ .
Personal and educational expenses .....•..•.... . ..
School books and supplies ....... .. . . ... .. .... .
Personal and educational services ... . . ... . . .... .
11ndexes on a December 1982 = 1 00 base.
Source: U.S. Department of Labor, Bureau of Labor Statistics.
40
September
1992
141.3
138.5
137.4
141 .2
138.4
151 .9
161 .7
156.0
143.1
128.5
133.1
122.2
119.8
89.7
118.5
118.3
108.8
129.8
133.8
133.3
130.8
126.8
132.6
130.1
126.3
148.8
126.8
125.4
128.3
127.7
101 .7
142.2
152.7
104.8
163.5
145.6
192.3
189.5
192.9
177.7
143.2
131.3
157.7
187.0
138.6
137.0
140.1
202.6
193.0
203.5
Unadjusted indexes
July August September
1992 1992 1991
140.5 140.9 137.2
137.2 138.0 136.0
135.7 136.9 134.9
140.8 141.0 138.9
138.3 138.6 134.7
151.8 152.3 147.4
162.8 163.5 156.2
155.5 155.8 151.6
142.6 142.9 138.9
128.8 128.1 126.8
133.4 133.1 130.7
122.6 121.3 121 .6
119.4 119.4 116.8
90.0 89.7 88.9
117.6 117.5 115.5
118.4 118.3 116.4
109.4 109.0 107.7
130.1 130.1 129.4
132.6 133.0 128.6
129.2 130.2 131 .3
126.5 127.6 129.1
124.2 1