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Money Income Sources of Young Survivors, December 1959

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Money Income Sources of Young Survivors, December 1959 Monev Income Sources of Young Survivors, Dec&ber 1959 by MOLLIE ORSHANSKY * THE SOURCES of income for the major pop- program in terms of numbers served: 2 out of ulation groups with whom the public income- every 3 paternal orphans were supported in part maintenance programs are concerned are a subject by monthly benefits based on the deceased father’s of continuing interest and are reported regularly e5Lrnings.l Old-age, survivors, and disability in- in the BULLETIN. One of these groups consists surance, in contrast to programs designed for of “young survivors”-orphans, their widowed particular segments of the popula,tion-such as mothers, and other widows under a~ge 65. The veterans, civil-service employees, or railroad following article provides estimates of the num- workers-is a general program that affords po- ber having income from each of the major public tential protection against the risk of income loss programs or from employment. through death, total disability, or retirement for the families of 9 out of 10 workers. Indeed, it is estima,ted that by now about 86 percent of the ORPHANED CHILDREN children whose fathers die are awarded benefits At the end of 1959, there were 3 million chil- on the basis of his employment. dren in the United States who had lost one or both of their parents. These orphans represented about 41,&s percent of all children, the same pro- Other Income Sources portion as in 1958, but considerably fewer than One in 8 of the paternal orphans was receiving in earlier periods of our history. Twenty years income as the child of a deceased veteran, and 1 ago, 1 out of every 10 children, or 3.8 million in in 25 as the survivor of a rai1roa.d or government all, was an orphan. employee. Some of the children-about 12 per- In the majority of instances, it was the father cent in all-were receiving benefits under more who was dead (table 1), and even in these days than one program, usually both old-age, survi- of increased employment of married women the vors, and disability insurance benefits and veter- father’s death is likely to mean loss of the fam- ans’ compensation or pension payments (table 2). ily’s major source of support. It is, therefore, Public assistance, in the form of aid to depend- encouraging that more than three-fourths of the ent children, provided income for some 225,000 fatherless children were provided for in some orphans-about 11 percent of the total. The ma- measure by public income-maintenance programs. jority of the assistance recipients were children In many cases the mothers of these children were not eligible for support under any social insur- also receiving some support from a public pro- ance or related program, but an estimated 95,000 gram, and more could have done so had they (about 40 percent) were beneficiaries of such pro- chosen to restrict their earnings. The high re- grams whose total income was considered inade- marriage rate for young widows makes it clear quate under the standards set by their own State. that a number of widowed mothers had remar- As many as a third of the 2.1 million paternal ried and acquired another means of support for orphans in December 1959 had mothers who were themselves and their children. working, and perhaps 6 percent were helping sup- port themselves by their own earnings, although Importance of OASDI the majority of the children who were employed Old-age, survivors, and disability insurance was probably had mothers working also. An un- by far the most important income-maintenance 1An additional 65,000orphans were receiving benefits based on the earnings credits of their deceased mother, *Division of Program Research,Office of the Commis- and about 10.000 orphans living outside the United sioner. States were also receiving benefits. 10 SOCIAL SECURITY TABLE I.-Estimated number of orphani:under age 18, by type filed a claim to become entitled: They were regu- and age, January 1, 1960 1 larly employed and earning more than is per- [In thousands1 mitted without suspension of benefits, the chil- dren’s benefits alone totaled the maximum allow- Father dead I - Mother able per family, or there were other reasons. Age (years) Total only Father Both dead Some of the mothers receiving old-age, survi- Total only P”dYi dead vors, and disability insurance benefits were re- .- ______ TOtal..-. 2,955 2,115 2,055 60 840 ceiving payments under another program as well .- ______ 0-I. _ _ _ _ _ _ _ _ _ _ _ 215 160 55 -usually as the widow of a deceased veteran or 5-9.------em 615 2 335 175 10-14..~~~~~~~~ 1.155 820 795 335 in the form of ‘public assistance supplements to 15-17 __________ 970 695 665 275 - insurance benefits not large enough for family 1 Estimates made by the Division of the Actuary based on Census popu- needs under State assistance standards. One in lation estimates for Jan. 1,. 1960, for the 60 states, the District of Cplumbia. Puerto Rico, and the Virgm Islands. Estimates based on generatmn mor- 6 of the mothers receiving old-age, survivors, and tality rates for the total United States population, by sex and race, and on the age distribution of parents of children born m each year 1941-59: not disability insurance benefits received veterans’ entirely consistent with those published before 1959 because of changes in methods and assumption. compensation or pension payments also, and about 8 Less than 2,500. 1 in 13 was on the public assistance rolls. The programs for veterans’ survivors and aid to de- known but no doubt considerable number of or- pendent children, the two largest income-mainte- phans had acquired a new father and thus a new nance programs after old-age, survivors, and dis- source of support through adoption or by the ability insurance, provided some income for ‘70,- mother’s remarriage. Others were dependent, at 000 and 75,000 widowed mothers, respectively. least in part, on older brothers and sisters, grand- parents, or other relatives with whom they made their home, and a sma,ll number were in foster- family homes or public institutions. Employment as Income Source Despite the fact that public programs provided income for many widows with children, the WIDOWS WITH CHILDREN IN THEIR CARE mother’s own employment was a very important source of support for young survivor families. At the end of 1959, there mere about 31/2 About every other mother worked. It is not sur- million widows under age 65 in the United States. prising that more than 40 percent of the working One in every 5--740,000 in all-was responsible mothers were themselves receiving social insur- for the care of a child or children under age 18 ance or similar payments, since public programs (table 3). Mothers and children, deprived of their source of support by the death of the father, make up one of the main groups whom public TABLE 2.-Estimated number of children under age 18 with income-maintenance programs are designed to father dead receiving money income from speci$ed public income- maintenance programs, December 1969 1 protect. All told, 59 percent of the widowed mothers were receiving such income support- Paternal orphans 395,000 from social insurance and related pro- Source of money income grams and ‘75,000 from federally aided public as- sistance, with 30,000 receiving payments of both Total in population- ________________ _____________ 2,115 II33 types. Any public income-maintenance program *.------- 1,605 For the mothers, as for the orphaned children, Social insurance and related programs z....------_- 1,475 :: Old-age, survivors, and disability insurance.---- 1,400 66 old-age, survivors, and disability insurance was Veterans’ compensation and pension programs.- 245 12 Railroad and government employees’ retirement the most common income-support program, with programs..._-_-.-_----.----------------------- Aid to dependent children 3 _________ _..__________ 2;: 1: benefits going to every other one. An additional * Data relate to the 50 States, the District of Columbia. Puerto Rico, and 85,000 mothers on the old-age, survivors, and dis- the Virgin Islands. * Orphans with income from more than one program are counted only once. ability insurance rolls were having benefits with- a Includes about 15,000 paternal orphans for whom the assistance payment held in December because their earnings were was based on factor other than father’s death. Source: Estimated in the Division of Program Research on the basis of above the work-test limit. An unknown number published and unpublished data from the Division of the Actuary and from the Bureau of the Census. the Bureau of Labor Statistics, and agencies of others who could have received benefits never administering income-maintenance programs. BULLETIN, SEPTEMBER 1960 11 TABLE a.--Estimated number of widows under age 66 with jecture-that widowed mothers are less likely to chikiren under age 18 receiting money income from employment work than are mothers in families broken for and specified public income-maintenance programs, December reasons other than death, despite the fact that 1969 1 fewer of the widows have children of preschool Source of money income r age. Unlike widowhood and orphanhood, loss of IF------I family income through separation, desertion, or 1. Total in population ___________________________ 740 100 divorce is not an insurable risk in terms of exist- 2. Employment.~..~.-~~~~~..~-~~~~~~~-.-~~~~.~-~ 380 51 3. Social insurance and related programs 3 . ..____ 395 ing programs. Both widowed mothers and di- Old-age, survivors, and disability insurance.- 370 ii Veterans’ compensation and pension pro- vorced or separated mothers are more likely to grams.-..-.~~~~~..-~~~~~~~~--~~~~~~~-~~~~~ 70 9 Railroad and government employees’ retiie- work than those in husband-wife households.
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