WOMENS ECONOMIC RISK AND THE ECONOMIC POSITION OF SINGLE MOTHERS

The poor economic position of single-mother households is a result of three factors: women's generally lower wages, lower economic support f rom men, and a relatively great need for income. This paper examines t he relative importance of the last two of these factors. Data from the Luxembourg Income Study show that single-mother households in West Ge rmany and the United States have high rates of poverty while their sit uation in Sweden is considerably better. The remainder of the analysis concentrates on the economic risks which would be faced by married pa rents if they were to separate tomorrow, and on the insurance transfer incomes provide against such risks. It is shown, first, that the cost s of breaking one household into two are considerable, and that single -mother households will be worse off economically, unless a substantia l increase in family income takes place. Second, that the economic dep endence of married mothers places many in a 'high risk' situation, whe re they will lose a high proportion of their economic resources if the support from a spouse disappears. Finally, the analysis shows that tr ansfer income respresents a poor insurance against the risk resulting from women's economic dependence.