THE IMPACT OF CORESIDENCE ON ECONOMIC WELL-BEING OF ELDERLY WIDOWS

Cross-sectional data from the Survey of Income and Program Participation were used to estimate the impact of coresidence on the economic well-being of elderly widows and of coresident family members. Coresidence improves well-being for both the widow and the other participants in 51 percent of cases; improves it for the widow and diminishes it for the others in 28 percent of cases; and improves it for the others while diminishing it for the widow in 21 percent of cases. Among non-Whites, coresidence benefits the widow less, and other members more, than among Whites. A regression model of the economic benefit to elderly widows from coresidence was used to explain why non-White widows receive less benefit from coresidence than Whites. Much of the racial difference con be explained by differences in household composition and the lower earnings of adult males in the households of non-White elders. While coresidence is often thought of as a response to an elderly widow's needs, her presence typically contributes to rather than diminishes the economic well-being of the household, and this is especially true among non-Whites.