While a recession is typically a time when everyone from families to corporations tighten their belts, high-income parents actually increased spending on their children during the Great Recession, according to findings presented at the 2014 American Sociological Association conference.
Sabino Kornrich, assistant professor of sociology at Emory University, studied data from the Consumer Expenditures Survey, conducted by the U.S. Bureau of Labor Statistics, and discovered that parents from all income levels spent about the same or slightly less on expenses such as childcare, food, books, toys and clothing for their children during the recession. But just one child-related expense saw a significant increase in spending among parents at the top income level (top 10 percent in the U.S.)—education.
"Parents are worried about their children's futures. The recession highlights this for parents and makes them want to invest more in their children's educations," Kornrich says.
Since the start of the recession, enrollment in high-cost, private middle schools and high schools increased, Kornrich says. And education spending also increased among wealthy parents with college-aged children.
"Potentially, parents are spending more after the onset of the recession to keep their kids in school longer due to the terrible job market. So it looks like wealthy parents are the ones with the resources to do that," Kornrich says.
The study also looked at parent spending on childcare and a range of goods and found that spending on those items remained relatively flat among all income levels and seemed somewhat recession-proof as parents cut expenses in areas that did not involve their children, Kornrich observes. But there were significant differences in what wealthy parents spent on their children and what lower-income parents were able to spend.
"Inequality already exists between spending at different income levels, and those inequalities didn't change much during the recession," Kornrich says.
Additionally, wealthy parents' ability to spend more in response to recession could help perpetuate educational and income inequalities among these children as they mature and become adults, Kornrich says.
"During the recent recession, inequalities in parental investment in children grew. So the recession looks like it's not just bad for current inequality but also inequality in the future," he says.
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© Medical Xpress 2011-2014, Science X network
While a recession is typically a time when everyone from families to corporations tighten their belts, high-income parents actually increased spending on their children during the Great Recession, according to findings presented at the 2014 American Sociological Association conference.
Sabino Kornrich, assistant professor of sociology at Emory University, studied data from the Consumer Expenditures Survey, conducted by the U.S. Bureau of Labor Statistics, and discovered that parents from all income levels spent about the same or slightly less on expenses such as childcare, food, books, toys and clothing for their children during the recession. But just one child-related expense saw a significant increase in spending among parents at the top income level (top 10 percent in the U.S.)—education.
"Parents are worried about their children's futures. The recession highlights this for parents and makes them want to invest more in their children's educations," Kornrich says.
Since the start of the recession, enrollment in high-cost, private middle schools and high schools increased, Kornrich says. And education spending also increased among wealthy parents with college-aged children.
"Potentially, parents are spending more after the onset of the recession to keep their kids in school longer due to the terrible job market. So it looks like wealthy parents are the ones with the resources to do that," Kornrich says.
The study also looked at parent spending on childcare and a range of goods and found that spending on those items remained relatively flat among all income levels and seemed somewhat recession-proof as parents cut expenses in areas that did not involve their children, Kornrich observes. But there were significant differences in what wealthy parents spent on their children and what lower-income parents were able to spend.
"Inequality already exists between spending at different income levels, and those inequalities didn't change much during the recession," Kornrich says.
Additionally, wealthy parents' ability to spend more in response to recession could help perpetuate educational and income inequalities among these children as they mature and become adults, Kornrich says.
"During the recent recession, inequalities in parental investment in children grew. So the recession looks like it's not just bad for current inequality but also inequality in the future," he says.
Explore further: Improved mental health in young children of higher income parents
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Apr 24, 2014
Researchers at the universities of Manchester and Stirling analysed survey data on 14,000 children, almost all aged three, and found that the higher the family's income, the better was the children's mental health.
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Aug 27, 2014
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Parents' separation found to boost children's behavior problems, but only in high-income families
Sep 10, 2014
Before they reach young adulthood, most children in the United States will experience their parents separating, divorcing, finding another partner, or getting remarried.
Study highlights importance of parents talking to kids about money
Apr 29, 2014
(Phys.org) —A new study from North Carolina State University and the University of Texas finds that children pay close attention to issues related to money, and that parents should make an effort to talk with their children ...
Kids eat better if their parents went to college
Sep 18, 2014
Children of college-educated parents eat more vegetables and drink less sugar, according to a new study from the University of British Columbia. But it's still not enough, the study goes on to say, as all kids are falling ...
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Every morning, food samples are laid out on a long table at a pristine laboratory run by a German firm in Singapore—but they're not meant for chefs or gourmets.
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