Family Structure and Family Earnings: The Determinants of Earnings Differences among Family Types

Mean total family earnings differ greatly by family structure (the number, age, and gender of adults, and the presence or absence of children and dependent elders). This study classifies families into seven major types by structure, and analyzes inequality in mean earnings among these types. Differences in mean earnings among types depend primarily on the amount of labor supplied to the labor market. The quantity of labor supplied, in turn, while reflecting in part differences in the head's characteristics (such as human capital), is largely determined by family structure. Earnings changes by family type over time from 1973 to 1987 are also discussed.