In this paper we assess the economic capabilities of a sample of unwed moth
ers who gave birth in the spring of 1998 in hospitals that serve low-income
residents in seven cities that are part of a national sampling frame. We s
how that recent unwed mothers who are not in a cohabiting relationship are
especially vulnerable to economic hardship because they are more likely to
encounter multiple barriers to employment than mothers who do cohabit with
their newborn's father. However, analyses of earnings capacity suggest that
most single-mother families would be poor even if the mothers worked 1500
hours per year, and near poor if they worked full-time, year round (2000 ho
urs). Analyses of income portfolios indicate that low-income mothers are qu
ite resourceful packaging cash and income transfers from multiple sources t
o meet the needs of their families, These results are discussed in the cont
ext of recent welfare reforms.