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Is the Family Essential for Accumulating Human Capital?

Skek Hosoi

 

Introduction:

Back in the days a household consisted of various family members such as grandparents, uncle and aunts, nieces and nephews, and the nuclear family including abundant children. However, general family size decreased as countries modernized and the nuclear family is more common now within a household. The nuclear family is basically both parents and the children. This trend too is changing where the nuclear family is being divided by death of either parent (perhaps both), divorce, or births out of wedlock. Currently, we see more families with children that consist of only fathers, mothers, and blended families with step-parents and step children. The dynamics of the family certainly change in these non-nuclear family structures, and the children are impacted by some way or another. The popular conclusion of many economists and sociologists is that children are better off economically and socially under a household where both parents are present, and negative effects are probable when the family deteriorates into or happens to be in a non-nuclear structure. Various theories such as the economic theory and the socialization theory exist to explain the impacts of non-nuclear family structures on children, and statistical testing and analysis have been implemented to test the hypotheses that originate from these theories.


The purpose of this paper is to explain why and how children are being affected by non-nuclear family structures in terms of education and prosperity, and policy implications are suggested at the end of the paper. The first part of this paper explains the different theories that explain family structure impacts on children such as the economic and socialization theories. The second part is an analysis of existing regression tests, which demonstrates the impacts on children and compares the different types of non-nuclear family structures with each other. The last section suggests several policy implications that optimize merits for children in the future.

Theories:

The "economic theory proposes that socioeconomic success is partly a function of human capital." (Biblarz, 325) This theory suggests that the quality of education and attainment depend on household production and the amount of parental investment in the child. Having both parents present is most beneficial for a child because the father and the mother provide resources that are complementary to each other. Simply put, the father provides the finance and the mother provides care and daily needs. If, however, one of the parents is missing, the other is usually incapable of providing both finance and general household needs to the fullest extent. Hence, the effect of an alternative (non-nuclear) family is detrimental to a child since he/she is incapable of receiving the resources fully.


The economic theory suggests that the presence of step-parents allows relief to this burden, and that blended families generally are equally beneficial as having two biological parents. In comparison to blended families, single-father families will have more negative effects, but will do better than single-mother families because of a substantial income advantage. Children who grow up in single-mother families will have the lowest attainments because mother-headed families "average less than a third the income of two-parent families and about half the income of alternative father-headed families." (Biblarz, 325) Nevertheless, we learn later on that results do not particularly support this economics-centered theory.


The socialization theory contrasts with the economic theory by disregarding the financial aspects of the different family structures, and focuses on the sociability of children. One of the responsibilities of parents is to provide children with motivation and skills necessary for school achievement. (Garasky, 1995) The absence of a parent reduces the amount of support and control that a child needs, and could alter a child's understanding of hierarchy within schools and other institutions. For example, a child that lives with a single-mother may not receive enough supervision and discipline due the mother's labor and other reasons, and could misbehave at school. Family disruption such as divorce also weakens parent-child relationships and parental values and role models are not efficiently internalized by children.


Generally in the socialization theory, the nuclear family structure is most beneficial as other theories suggest, and the rest contribute less merits to children. Family breakups and death of a parent will lead to certain levels of increased stress. The presence of step-parents may provide some parenting, but living with them could also lead to stress. If these alternative parents are not willing to provide adequate parenting, children are better off being raised by single parents.
The evolutionary psychology perspective puts more focus on the mother's role in a household as opposed to the economic theory, which states that the father's presence is more important due to financial reasons. This view begins with a premise that "mothers invest more of their resources in children than fathers", (Biblarz, 326) and the mother is interested more in a child's well-being than the father. This is mainly because the mother is more biologically attached to a child due to her reproductive investment to the child (in other words, birth). As a result, mothers in general are concerned with how well one single child does in life, instead of having abundant number of children. Like the two other theories presented here, the evolutionary psychology perspective predicts that children do best under the nuclear family structure. Also, single-mother families are better off than single-father families because of the reasons above. Children from single-mother families will also have advantages over families with step-fathers and biological mothers because blended families are usually notorious for having internal friction and conflict, leading to great amounts of stress.


The three theories, the economic, the socialization, and the evolutionary psychology theories all have their explanations on how alternative families impact the well-being and/or achievements of a child. The economic theory focuses on the importance of the father's role as the main provider of finance. The socialization theory gives emphasis to the social well-being of a child and how family breakups lead to demerits. The evolutionary psychology theory reveals the importance of a mother to a child in terms of her care.

 

Results:

The results of the regression analysis are based on a census generated of high school students, college students, and young adults. A measure called the SEI (socioeconomic index) is used to determine the children's sociological achievements.


As all three theories suggested, children living with both biological parents have the highest SEI, and a high percentage finish their full education through college and have higher achievements in life. The next beneficial type of family structure that the statistics revealed was the single-mother family. This is inconsistent with the economic theory, but follows the evolutionary psychology perspective quite well. Perhaps it is the mother who impacts the child mostly due to the special care and relationship of a mother and child. In general, single-father families, and step-families lead to negative effects on children's attainment, and families with step-fathers yield the worse results. (Biblarz, 348) This statistically suggests that mothers should not remarry for the sake of her children, if for some reason the spouse is not present.


The general results described above is only "general" because there are other variables that need to be taken into account to provide a thorough explanation to the impacts a family could have on children. For example the number of siblings is essential in determining the socioeconomic achievements of a child. Consistent with the economic theory, having more siblings reduces the amount of money invested on a single child. Therefore, even if a mother-led family is generally more beneficial to children, the number of children could affect that outcome. Another factor related to this is the education of the mother. When a mother is educated well enough, statistics show that the educated mother's child will do exceptionally well, and the education also leads to a more sophisticated family structure with fewer siblings. (Garasky, 1995)


Another factor that altered results is whether the alternative non-nuclear family was caused by a divorce or death. Alternative families recently have been caused by divorce rather than death due to modern trends. In the case of death, the experience is traumatic, but the children and the widowed parent develop a strong bond from overcoming this experience, which then leads to positive effects. However, the divorce of parents usually leads to demonstrates the parents' incompetence to the children, and makes them lose confidence in their parents. The trauma caused by this situation is more detrimental to the development of children. Furthermore, the age that the children experience these family breakdowns is another key to find out the impacts of family structure. Statistics show that the younger a child experiences traumatic family destructions, the worse it is for their future achievements. A four year old child that experiences family divorce would suffer greater negative effects than a seventeen year old that experiences the same separation. (Biblarz, 326)

Conclusion & Policy Implications:

As a result of this investigation, the paper concludes that the family is essential for accumulating human capital. This means that the ideal form of family structure, the nuclear family should be maintained in each household so that the children grow up to be high achievers in society. Governments of all countries should implement policies to advocate marriage and discourage parents from divorcing. One way to do this is to completely remove marriage penalties from the federal income tax. This allows couples to marry and remain married because they do not have to pay as much tax. Another method is to charge couples a higher penalty rates in divorce cases, so that divorce incentives diminish. However, this would only work if both parents are actively seeking better relationships with each other so as to not affect their children negatively. (Ginther, 20)


If in case the family ends up breaking down while children are of pre-school age, a specific kind of education program must be implemented. One example is the Head Start program that supports children from disadvantaged backgrounds so that good groundings are built before the children go into more formal education. Additionally, parents also should be educated to maximize the outcome of their disadvantaged children. (Garasky, 1995)

 

Bibliography:

 

Biblarz, Timothy J. and Adrian E. Raferty, (1999) "Family Structure, Educational Attainment, and Socioeconomic Success: Rethinking the "Pathology of Matriarchy" , in The American Journal of Sociology, September 1999, Vol. 105, No.2, pp 321-353

Garasky, Steven, (1995), "The Efects of Family Structure on Educational Achievement: Do the Effects Vary By the Age of the Child?" in The American Journal of Economics and Sociology, January 1995, Vol. 54, No. 1. pp. 89 -106

Ginther, Donna K., Robert A. Pollak, (2003), "Does Family Structure Effect Children's Educational Outcomes?" NBER Working Paper, 9628, April 2003