Sharing or Limiting Wealth? The Relationship Between Family Structure and Net Worth in Two Countries

• In Event: 424 - Section on Economic Sociology Paper Session. Economic Inequality in Wealth, Assets, and Credit

Abstract

Household structure, composition, and size influence multiple outcomes for families and children. Researchers most often connect these aspects to poverty levels, but the number of adults present and their roles within households also have implications for wealth accumulation. In a context of rising wealth inequality, this paper examines wealth disparities across varying household structures in Canada and the United States using data from the 2013 Survey of Consumer Finances (SCF) and the 2012 Survey of Financial Security (SFS). We apply quantile regression models to investigate median net worth by household type, which includes variation by gender, marital status, parenthood, and, importantly, the presence of other adult relatives and their roles within the households. Our preliminary results indicate that single adults living without any other adult relatives held the lowest levels of net worth regardless of gender and parental status. However, living in extended households with other relatives generally helped with the net worth of single individuals. Comparing countries, extended households also held more wealth than two-adult households in Canada, but there were no differences between these household types in the United States. Incorporating aspects of intersectionality and cumulative disadvantage, we also show how these effects vary for members of disadvantaged categorical groups that include racial minorities, people with disabilities, and those with lower levels of education. Among these groups, extended family households generally did not experience the wealth benefits that more advantaged households did.

Authors

• Michelle Lee Maroto, University of Alberta

• Laura Aylsworth, University of Alberta