Economic Well-being of Single Mothers: Work First or Postsecondary Education?

Abstract

This article investigates the relationship between single mothers' education and their economic well-being. Through the analysis of the 1993 Panel Study of Income Dynamics (PSID) data, we examine the effect of education on a sample of White and African American single mothers. The results indicate that past work experience is a weak predictor of current economic well-being. Having education, particularly postsecondary education, on the other hand, significantly improves their economic status. The results challenge the "work-first" approach to alleviating poverty and provide more support for designing policies to develop human capital.