Wealth of children from single-parent families: Low levels and high inequality in Germany

Families’ economic wealth is a resource that can provide children with crucial advantages early in their lives. Prior research identified substantial variation of levels between different family types from single-parent families being most disadvantaged. The causes this disadvantage, how much the disadvantage varies and non-resident parents’ may potentially reduce remain unclear. To address these gaps, we use data German Socio-Economic Panel (2002–17) to examine level inequality for using recentred influence function regression decomposition analysis. We replicate earlier findings large families. find be mainly explained compositional differences household income employment characteristics. Beyond differences, higher than other only partly by observed demographic socio-economic When considering parents, reduced but remains substantial. JEL-codes: D31, D1, J1