The Impact of Changing Family Structures on the Income Distribution among Costa Rican Women 1993-2009

Kasy M, Ramos-Chaves A

Changes in family structures, such as the composition of households with
respect to size, age, and gender, can have an impact on poverty rates and
the income distribution more generally. This study analyzes the impact of
changing family structures on the income distribution among adult Costa
Rican women between 1993 and 2009, using decomposition methods. There was
a general increase in the share of family structures associated with lower
incomes (singles with dependents) until 2001. After 2001, this trend
reversed for women at the upper end of the income distribution, while it
continued for women at the lower end. Correspondingly, this study finds a
general negative effect of changing family structures on incomes of adult
women until 2001, and an inequality-increasing effect after 2001. The
change in trends might be due to a law coming into force in 2001 that
mandated DNA tests for presumptive fathers unwilling to recognize their
children.