2025/10/23 by Orestes P Hastings · 1 voice
Business, Management and Accounting · Social Sciences · #Entrepreneurship Studies and Influences #Migration, Ethnicity, and Economy #Family Business Performance and Succession
paper · doi:10.31235/osf.io/784p3_v1
Existing research finds that differences in economic resources explain a much larger share of the spending gap between married and single parents than between married and cohabiting parents. This study focuses on extracurricular spending and considers three non-economic explanations for why children in cohabiting families receive less than those in married households: the greater prevalence of non-biological parents in cohabiting households, the relatively shorter duration of cohabiting relationships, and potentially lower levels of relational commitment. Using data from the Panel Study of Income Dynamics and its 2014 and 2019 Child Development Supplement (5,422 observations of 4,361 children in 2,635 households), I first reproduce established differences in parental spending by family structure. Accounting for biological parent status and relationship duration does little to further reduce the gap between married and cohabiting parents. These findings suggest that unmeasured aspects of commitment may shape family-structure differences in extracurricular investments, but they also highlight the need for continued research given the growing complexity of U.S. family living arrangements and the importance of parental financial investments for children’s development and long-term outcomes.