The Economics of Marriage and Divorce

THE ECONOMICS OF MARRIAGE & DIVORCE MARRIED PARENTS SINGLE PARENT 2 PARENT HOUSEHOLD 1 PARENT HOUSEHOLD O0 College-educated Americans more likely to marry one another and stay privileged O Americans with less education are less likely to marry Almost 60% of the births outside of marriage are to women who have a high school-education or less .------ Y Less than 10% of the births to college-educated women occur outside marriage About half of unmarried parents who live together at a child's birth will split up within 5 years .----- ------- More disposable income With both spouses working | 0. Less disposable income with only one paycheck More free time available "let's go on a vacation!" Less free time available "Can't get sick" Children of married parents are more likely to: • Finish college • Find good jobs • Form a stable marriage in the future Children of single parents are more likely to: · Experience childhood poverty • Become teenage parents · Act up in class • Drop out of school PERCENTAGE OF BIRTHS OCCURRING OUTSIDE OF MARRIAGE TO WOMEN OVER 18 BETWEEN 1990 TO 2009, BASED ON EDUCATION 100 That's a dramatic 80 difference, and it varies by education more than by race. 2009 60 2009 1990 2009 40 1990 2009 1990 1990 - Mindy Scott a Child Trends demographer. 20 5% 46% 61% 29% 55% 17% 38% Less than a High School diploma High School diploma or GED Some college Associate's degree Bachelor's degree or higher Children in middle-income households have become much less likely than those in upper-income households to have married parents. PERCENTAGE OF HOUSEHOLD INCOME GROUPS WITH MARRIED PARENTS 96% 95%9 088% TOP THIRD 77%O In 2010, the top third reported they earned more than $89,122 071% MIDDLE THIRD In 2010, the bottom third reported they earned more than $41,940 O 41% воттом THIRD 1968 1980 1990 2000 2010 A STUDY THAT TRACKED CHILDREN WHO WERE 12 TO 14 YEARS OLD AT THE START OF 1996 shows that those who didn't live with both parents were less likely to have moved up to a higher income group 12 years later as adults. MARRIED PARENTS SINGLE PARENT TOP THIRD - 2 PARENT HOUSEHOLD PARENT'S INCOME LEVEL 1 PARENT HOUSEHOLD $76,022 OVER CHILDREN'S INCOME BOTTOM THIRD. CHILDREN'S INCOME BOTTOM THIRD. 15% 27% AFTER 12 YEARS 43% CHILDREN'S 50% 35% INCOME LEVEL WAS THE SAME AS THEIR PARENTS 30% CHILDREN'S INCOME CHILDREN'S INCOME MIDDLE THIRD MIDDLE THIRD, MIDDLE THIRD. PARENT'S INCOME LEVEL BETWEEN $40,726 $76,022 CHILDREN'S INCOME TOP THIRD. CHILDREN'S INCOME TOP THIRD. 34% 39% 35% 36% AFTER 12 YEARS CHILDREN'S INCOME LEVEL WAS THE SAME AS THEIR PARENTS 30% 26% CHILDREN'S INCOME CHILDREN'S INCOME BOTTOM THIRD. BOTTOM THIRD. BOTTOM THIRD PARENT'S INCOME LEVEL LESS THAN H$40,726 CHILDREN'S INCOME TOP THIRD. CHILDREN'S INCOME TOP THIRD. 18% 23% 42% CHILDREN'S INCOME LEVEL 56% AFTER 12 YEARS WILL BE SAME AS THEIR PARENTS 26% 35% CHILDREN'S INCOME MIDDLE THIRD CHILDREN'S INCOME MIDDLE THIRD. WHAT HAPPENS TO THE NEXT GENERATION? CHILDREN OF MARRIED PARENTS ARE MORE LIKELY TO HAVE A HIGHER INCOME AND LESS LIKELY TO LIVE IN POVERTY. CHILDREN OF A SINGLE PARENT ARE MORE LIKELY TO HAVE A LOWER INCOME AND MORE LIKELY TO LIVE IN POVERTY. TOTAL NUMBER OF PARENTS IN THE TOP THIRD. TOTAL NUMBER OF PARENTS IN TOP THIRD. PERCENTAGE OF CHILDREN IN THE TOP THIRD. +8% -5% PERCENTAGE WHO NOW LIVE IN THE TOP THIRD. TOTAL NUMBER OF PARENTS IN MIDDLE THIRD. TOTAL NUMBER OF PARENTS IN MIDDLE THIRD PERCENTAGE OF CHILDREN IN THE MIDDLE THIRD. +9% -8% PERCENTAGE WHO NOW LIVE IN THE MIDDLE THIRD. TOTAL NUMBER OF PARENTS IN BOTTOM THIRD. TOTAL NUMBER OF PARENTS IN BOTTOM THIRD. PERCENTAGE OF CHILDREN IN THE BOTTOM THIRD. -17% +13% PERCENTAGE WHO NOW LIVE IN THE BOTTOM THIRD. 20 40 60 80 100 100 80 60 40 20 gernerally meanis are more likely to 2 PARENTS 2 PAYCHECKS CHILDREN FINISH FIND HAVE A STABLE MARRIAGE COLLEGE GOOD JOBS paydaylöan LONG TERM FINANCIAL DECISIONS LAST FOR GENERATIONS. SINCE 1998 DEVELOPED BY CHOOSE WISELY. N NOWSOURCING sources: http://www.nytimes.com/2012/07/15/us/two-classes-in-america-divided-by-i-do.html http://www.childtrends.org/index.cfm --- ---