The Implications of Grandparent Coresidence for Economic Hardship among Children in Mother-Only Families.

Estimates suggest that more than 6 million children live with at least one grandparent. Despite evidence establishing the growing prevalence of this arrangement, limited research has focused on estimating the implications of co-residence for the economic well-being of grandchildren. Using data from the 2001 panel of the Survey of Income and Program Participation, this paper examines levels of financial hardship among a particularly vulnerable group of children - those living in mother-only families. Findings suggest that children living in mother-only families that include a grandparent are substantially less likely to be living below or near the poverty level, compared to children living in mother-only families without a grandparent present. The financial security of children in these three-generation households is enhanced through significant economic contributions of the grandparents, and from household receipt of a wide range of financial resources, including means-tested cash transfers and other income such as Social Security.