This post by Paula Span on The New Old Age blog in The New York Times is intriguing. It makes sense, but who knew Social Security had this effect so quickly?
(I’ve excerpted, then edited it down. See the whole piece here.)
In the late 1800’s and early 1900’s, almost 70 percent of elderly widows lived with an adult child; by 1990, that proportion had plummeted to 20 percent, according to the Census Bureau.
Economists Robert F. Schoeni of the University of Michigan and Kathleen McGarry, now at Dartmouth College, investigated this phenomenon, using more than a century of Census data showing where elderly widows resided…they pinpointed the year the big change began: 1940. After that, the graph depicting the percentage of widows living with children resembles a ski slope: down, down and down some more, until by 1990 more than 60 percent of widows lived ALONE.
So what happened in 1940? The economists, testing various hypotheses, found a far simpler explanation.
In 1935, President Franklin D. Roosevelt signed the Social Security Act. In 1940, the monthly checks began to flow. And even those tiny checks — Ida May Fuller of Ludlow, Vt., got the first one, for $22.54 — were enough to allow widows, who had historically high poverty rates, to remain in their homes. As Social Security benefits rose and reached a larger proportion of the elderly, the trend toward remaining at home accelerated.
The single greatest factor driving this immense cultural shift, in other words, was economic. Once elders no longer had to move in with their children to survive, most opted not to.
“When they have more income and they have a choice of how to live, they choose to live alone,” Ms. McGarry said. “They buy their independence.”




