Child Poverty Gaps in Single-Parent: Comparing Cash, Service, and Tax Policies in Six OECD Countries

• In Event: Family Section Roundtables
  In Refereed Roundtable (60 minute): Table 12: Policy and Family

Abstract

Across OECD countries, children in single-parent households face substantially higher poverty risks than those in two-parent families. This disparity often persists despite overall economic prosperity. This pattern suggests that child poverty is not merely a function of national wealth, but is deeply shaped by how family policies are structured. This study examines cross-country variation in child poverty gaps by family structure and investigates how policy configuration might shape these disparities.

Using data from the OECD Family Database, the analysis focuses on working-age households with at least one child. We compared overall child poverty rates with the poverty gap between children living in single-mother households and those in two-parent households. Poverty gaps are calculated by comparing single-adult households with households containing two or more adults.

Countries were selected in two steps. First, OECD countries where the single-parent versus two-parent child poverty gap exceeded the OECD average were identified. Among these, six countries with comparable income levels but divergent poverty gaps were chosen for in-depth comparison: Australia, Canada, New Zealand, South Korea, Spain, and the United States.

To explore policy contexts, the study compared public expenditure on family benefits across three dimensions—cash transfers, in-kind services, and tax-based benefits—as a percentage of GDP. While overall spending levels vary, countries such as Denmark and Finland allocate larger shares to service provision, whereas others rely more heavily on cash or tax mechanisms.

Findings indicate that across the focal countries, national-level policies specifically targeted at children in single-parent families remain limited. Family benefits are largely structured around general eligibility criteria rather than family structure, reducing their effectiveness in addressing poverty disparities. The study concludes by discussing the need for more targeted and structurally responsive policy instruments to reduce child poverty gaps between single-parent and two-parent households.

Authors

• Yookyeong Park, University at Albany-SUNY

• Jin Lee, The Australian National University