The Dynamics of U.S. Household Economic Circumstances Around a Birth

Abstract

With the arrival of an infant, many households face increased demands on resources, changes in the composition of income, and a potentially heightened risk of income inadequacy. Changing household economic circumstances around a birth have implications for child and family well-being, women's economic security, and public program design, yet have received little research attention in the United States. Using data from the Survey of Income and Program Participation, this study provides new descriptive evidence of month-to-month changes in household income adequacy and the composition of household income in the year before and after a birth. Results show evidence of significant declines in household income adequacy in the months around a birth, particularly for single mothers who live without other adults. Income from public benefit programs buffers but does not eliminate declines in income adequacy. Results have implications for policies targeted at this period, including public benefit and parental leave programs.