Bureau of Business Research April 1992 College and Graduate School of Business, University of Texas at Austin ~ I Texas and U.S. Families, 1990 Recently, a great deal of attention has been focused on the state of the American family. A variety of political, social, economic, and tech­ nological changes over the past 25 years have contributed to a decline in the traditional two­ parent family, an increase in marital disruption, a decline in the proportion of families with chil­ dren under 18, and an increase in the labor force population of women with young children. Texas families, while similar to U.S. families, are also unique in many ways. A look at some of these differences should help employer and public policymakers better understand the diver­ sity of today's families and how the needs of ·Texas families may differ from those in other parts of the United States. Family composition. Over the past two de­ cades, the share of families with children under 18 has declined in both Texas and the United States. The aging of the population (and subse­ quent increase in the number of families with adult children) and the decision of many young married couples to postpone or forego child­ bearing have both contributed to this trend. Today, minor children are present in only 57 percent of Texas families and slightly more than half of all U.S. families. Children make up only 26 percent of the total U.S. population and 31 percent of all persons in Texas. Perhaps the most pervasive trend in family demographics has been the increase in single­parent families. Such families account for ap­proximately 14 percent of all families and one­fourth of all families with children under 18 in both the United States and Texas. Family income and labor force participation. The median family income of $32,800 for U.S. families is somewhat higher than the Texas figure of $26,300. However, looking at a com­posite figure masks the true range of income for today's families, particularly those with children. In response to difficult economic conditions since the early 1970s, many couples have main­tained their family incomes by increasing the wife's rate of labor force participation. Among two-parent families in Texas, 63 percent include mothers in the labor force, 70 percent of whom are employed full time. Nationwide, slightly more mothers in two-parent families are in the Thousands Median Family Income by Family Type, 1990 of dollars 45,000 40,000 35.000 30,000 25,000 • United States 20,000 D Texas 15.000 10,000 5,000 0 Two-parent All families family-both employed employed Source: Current Population Survey, March 1990. . ') tftl I I I I I1 l I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I l}f labor force (66 percent), but a smaller share (64 percent) work full time. Three-fourths of all single parents in both Texas and the United States are in the labor force, with 70 percent employed full time. Despite these high rates, the income levels for single-parent families remain low, with many falling below the poverty line. Several factors contribute to this situation. Due to the erratic awarding and collection of child support, many single-parent families must rely on one person's earnings or support from government programs. Education levels for heads of single­parent families are generally lower than those for two-parent families, resulting in lower paying jobs. Furthermore, most single-parent families are headed by women, who earn only 72 per­cent of the income of males with similar education, employment, occupations, and family characteristics. Educational attainment. The level of educa­tional achievement of adults in two-parent fami­lies plays a role in their financial success. Both in the United States and in Texas, nearly 30 percent of the heads of two-parent families have completed college. In contrast, only 10 percent of all single parents have achieved this level of education, with two-thirds having completed no more than a high school education. Only half of two-parent families have such low educational attainment. Race/ethnicity. The racial/ethnic makeup of Texas families differs dramatically from those in other parts of the country. Nationally, white fa­ milies account for 71 percent of all families with children but make up only 53 percent of such Texas families. Thirty percent of Texas families are Hispanic, compared to 10 percent of the U.S. Black families make up approximately 15 percent of all families in both Texas and the United States. Due to the larger number of children in Hispanic families, the ethnic composition of Texas children is even more diverse. While almost 70 percent of all American children are white, only 50 percent belong to that ethnic group in Texas. Nationally, black children com­pose the largest single minority group (15 per­cent) and Hispanic children make up only 11 percent of all children. In Texas, however, the opposite is true: 15 percent of Texas children are black; 33 percent, Hispanic. Families and children at risk. Many business and government leaders are concerned that the changes in families over the past decades have jeopardized many children's chances of growing up with sufficient education, nutrition, health care, and the nurturing needed to contribute productively to our society. While the definition of at-risk children and families varies from one program to another, experts generally agree that children who grow up in poverty are at the greatest risk of failing to achieve their potential as adults. Currently, one-fifth of all U.S. children and one-fourth of all Texas children live in poverty. The most common type of poor family in the United States is white and headed by a single parent. An adult is employed in slightly fewer than half of all poor families. In Texas, however, Total Children in Poverty by Race and Ethnicity, 1990 Texas United States Black Source: Currant Population Survey, March 1990. tftl I I I I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IJ!r tftl 11 I 11111 I I I I II I I I I I IIII I IIIII I I I II I I IIIIIIIIIIII I I I IIII I I I I I I I II I I I IIIIIIJtr Employment and Unemployment Rate by Metropolitan Area Total nonagricultural employment (thousands) Total employment (thousands) Unemployment rate Area Jan. 1992 Jan. 1991 Percentage change Jan. 1992 Jan. 1991 Percentage change Jan. 1992 Abilene 49.1 48.5 1.2 47.9 47.5 0.8 7.4 Amarillo 78.8 77.8 1.3 91.0 90.1 1.0 6.6 Austin 392.9 383.9 2.3 428.1 417.4 2.6 5.8 Beaumont-Port Arthur 151.5 147.3 2.9 160.4 156.1 2.8 9.7 Brazoria 71.7 70.3 2.0 87.4 85.6 2.1 8.2 Brownsville-Harlingen 78.9 76.9 2.6 95.5 92.7 3.0 14.6 Bryan-College Station 55.7 53.8 3.5 60.7 58.6 3.6 4.7 Corpus Christi 134.9 131.0 3.0 149.3 146.7 1.8 10.8 Dallas 1,370.3 1,365.7 0.3 1,335.8 1,341.6 -0.4 7.8 El Paso 210.4 207.2 1.5 224.4 221 .0 1.5 12.4 Fort Worth-Arlington 579.8 583.5 -0.6 675.7 684.2 -1.2 7.8 Galveston-Texas City 77.9 75 .6 3.0 102.7 99.6 3.1 9.4 Houston 1,630.4 1,600.5 1.9 1,646.2 1,619.2 1.7 7.4 Killeen-Temple 74.7 73.3 1.9 90.3 88.5 z.o 9.1 Laredo 48.2 46.6 3.4 50.7 48 .7 4.1 10.4 Longview-Marshall 70.3 69.5 1.2 74.0 72.8 1.6 10.5 Lubbock 97.3 97.3 0.0 106.7 107.7 -0.9 6.8 McAllen-Edinburg-Mission 105.8 103.5 2.2 134.3 132.4 1.4 19.7 Midland 46.4 44.6 4.0 46.3 45.0 2.9 7.0 Odessa 45 .6 44.6 2.2 49.6 48.8 1.6 9.3 San Angelo 37.8 36.2 4.4 42.3 40.7 3.9 7.0 San Antonio 526.2 517.0 1.8 561.7 555.4 1.1 7.6 Sherman-Denison 36.9 36.7 0.5 43 .1 43.7 -1.4 8.3 Texarkana 46.5 46.1 0.9 52.9 52.6 0.8 8.8 Tyler 62 .9 62.9 0.0 69.8 69.5 0.4 8.4 Victoria 30.6 29.0 5.5 36.3 34.8 4.3 7.2 Waco 81.6 81.3 0.4 85.5 85.4 0.1 7.5 Wichita Falls 50.0 49.2 1.6 50.6 50.0 1.2 7.8 Total Texas 7,172.5 7,041.0 1.9 7,924.3 7,838.9 1.1 8.3 Total United States 107,331.0 107,979.0 -1.1 115,122.0 114,990.0 -0.5 8.0 Note: Data are not seasonally adjusted. Figures for 1991 have undergone a major revision; previously published 1991 figures should no longer be used. Revised figures are available upon request. All 1992 figures are subject to revision. Sources: Texas Employment Commission and U.S. Department of Labor, Bureau of Labor Statistics. Nonagricultural Employment In Five Largest Texas Metropolitan Areas (January 1984=1.00) 1.35 1.30 1.25 1.20 1.15 1.10 1.05 1.00 J 0.95 0.90 +--t----f--+--+---+---+--+---l Total Employment in Five Largest Texas Metropolitan Areas (January 1984=1 .00) 1.30 1.25 1.20 1.15 1.10 1.05 1.00 0.95 0.90 +---+---+---+---+---+---+---+---< 1984 1985 1986 1987 1988 1989 1990 1991 1992 1984 1985 1986 1987 1988 1989 1990 1991 1992 ttll I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IJDr the majority of poor families are two-parent, Hispanic families, and at least one adult is working in approximately two-thirds of all poor families. Fewer than half of all poor Texas fami­ly heads have completed high school, compared to 57 percent of the heads of poor U.S. families. Policy Implications Given the diversity of today's families, busi­ness and government leaders face an incredible challenge as they develop policies that influence families and children. Policies developed at the national level may not reach the desired popula­tion in Texas. For example, the Family Support Act of 1988 strengthened child support regula­tions and extended Aid to Families with Depen­dent Children benefits to certain unemployed, two-parent families. Ultimately, this law should benefit a large number of poor children in the United States because so many poor families are headed by single or unemployed parents. In Texas, however, where the majority of poor chil­dren live in two-parent families with at least one working parent, most poor children remain unaffected by this legislation. In this election year, many candidates will claim that they want to strengthen the American Texas and U.S. Unemployment Rates (Seasonally adjusted) 12 11 10 9 8 7 6 5 4 +--~+-----<~--+~--+-~-+-~---+-~-+-~ 1~ 1~ 1~ 1~ 1~ 1~ 1~ 1~ 1~ family. Voters must carefully analyze the rhetor­ic to determine the types of family to which a candidate is referring-older families concerned about Medicare or young families without health insurance; two-parent, two-earner families, tradi­tional one-earner families, or single-parent fami­lies; affluent families or those living in poverty? Given the absence of a national family policy, each proposal must be judged by the ultimate impact it would have on helping all of our na­tion's children to become healthy, well-educated, and emotionally secure adults. -Deanna Schexnayder Manager of Human Resource Studies and Leslie Lawson Graduate Research Assistant Bureau of Business Research Family Law (continued) the parents and enacted a law permitting the appointment of a friend of the court in child support or possession cases. These are but a few examples of the evolving Texas family law. The list of changes since 1987 covers everything from spousal liability to rights of victims due to the delinquent conduct of a child to changes in the exemption property laws protecting the family from claims of creditors. Almost all of these changes reflect modem soci­ety's view of the family. Changes that will be discussed in the 1990s are somewhat predict­able: marriages between persons of the same sex, the reinstitution of a blood test to receive a marriage license, and whether the value of a professional license is community property are among the issues that will probably be reviewed. Less predictable are changes that will actually be made. One thing, however, is certain. The laws concerning the family will continue to change. -Gaylord A. Jentz Herbert D. Kelleher Professor in Business Law University of Texas at Austin ttll1111 i I I I I I I I I I I I I I I I I I I I ·I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IJDr tllllllll!llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllDr Texas Family Law: Changing Times, Changing Laws Each year thousands of Texas men and women embark on a lifetime career in matrimony. Be­cause the family is a basic unit in society, it is not surprising that the state, as guardian of this society, would have a vital interest in marriage, establishing the rules governing marital parties, including their children, marital property, and other persons involved in business or personal transactions with a married couple. Many of the laws governing the family have a long and established history. As society changes its beliefs, attitudes, and the manner in which it conducts its affairs, usually so does the law change. Family law is no exception. Substantial modifications to Texas family law date back to 1969 with the adoption of the Texas Family Code (Title I) dealing with the marriage relationship and with marital property, owner­ship, rights, and liabilities. During the next ten years three additional Titles were enacted con­cerning the parent-child relationship, the supervision of children, and the protection of the family. Although several changes occurred between 1979 and 1986, a substantial number have taken place since 1987. Some of these recent changes have affected even the basic procedures for get­ting married. Prospective married couples now receive printed materials about Acquired Immune Deficiency Syndrome (AIDS) and Human Immunodeficiency Virus (IDV). In ad­dition, the law now requires a 72-hour waiting period from the time of issuance of the license before a marriage ceremony can take place. Property ownership laws have changed as well. A 1987 constitutional amendment makes it possible for spouses to hold community property as joint tenants with right of survivorship, without first having to partition community property into separate property and then convert the separate property into survivorship joint tenancy (the old Texas two-step). The Uniform Premarital Agreement Act, also adopted in 1987, allows spouses to determine, by written agree­ment, their rights over property brought into and acquired during marriage. In 1989, laws were passed covering division of property not covered in a final decree of divorce or annulment. Perhaps some of the most dramatic changes taking place in recent years are in those laws af­fecting the child. The Texas Family Code and other codes have been substantially amended throughout the 1980s and early 1990s to better address the parent-child relationship and the needs of children in the context of modem so­cietal pressures. For example, in 1991, the Texas legislature provided for the admission of evi­dence of past child or sexual abuse in the defense of a child or spouse accused of killing his or her parent or spouse. The laws concerning the investigation and reporting of child abuse and child neglect have been amended substantially during the last three legislative sessions, and, since 1987, new defini­tions of what constitutes child abuse and child neglect have been enacted. Immediate oral reports (within 48 hours by a professional) must be made when abuse or neglect is learned or suspected, followed within five days by a written report, usually to the Texas Department of Human Services. By requiring the prompt reporting of even suspected incidences of abuse or neglect, the state clearly has indicated its in­tent to intervene promptly to protect the health and safety of children. There have been numerous other legal changes affecting children. Litigation focusing on the constitutional rights of illegitimate chil­dren prompted the legislature in 1989 to eliminate the statutory distinction between legiti­mate and illegitimate children. In 1987, the legislature provided guidelines for uniformity in setting times for visitation rights (possession of a child by a parent or grandparent), and since that time, child support payments have received a great deal of attention. Texas adopted the Revised Uniform Reciprocal Enforcement Support Act in 1987 to assist in the enforcement and collection of child support payments from a parent residing outside of the state of Texas. In 1989, the legislature both established uniform guidelines for the determination of the amount of child support to be awarded based on a set of statutory "factors" and the "net resources" of (continued on preceding page) tlllllil1lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllDr jt1llll::lllllllllllllllllllllllllllllllllllllll lllllllllllllllllll llllllllll llllDr Editor: Lois Glenn Shrout Assistant Editor: Sally Furgeson Texas Business Review is published six times a year (February, April, June, August, October, and December) by the Bureau of Business Research, Graduate School of Business, University of Texas at Austin. Texas Business Review is distributed free upon request. The Bureau of Business Research serves as a primary source for economic and demographic data on the state of Texas. An integral part of UT Austin's Graduate School of Business, the Bureau is located on the sixth floor of the College of Business Administration building. Announcements From its beginnings as a handout to a business law class in 1961 through six editions of a book that has served as a reference for laypeople and professionals, Texas Family Law has established a reputation as the most current and accessible guide to Texas marital rights, responsibilities, and liabilities. Changes in the law since 1987 have prompted a complete revision by Dr. Gaylord A. Jentz, Herbert D. Kelleher Centennial Professor in Business Law at UT-Austin. The seventh edition documents recent and significant modifications to the Texas Family Code, incor­porating all legislative changes enacted and in effect at the time of publication. Copies of the monograph ($15.00 plus tax) will be available from the Bureau May 1. To order, call (512) 471-5179 or write to the Bureau. 0£91 "ON lJlll.l'\I suxa.i 'unsny GIVd al!BlsOd ·s·n "!>lIO .LL!IOlldNON 6~-VL-£Il8l St?X;}.L 'U!lSOV 6~-VL xog Ud J H~::i:s::i:a ss::i:Nrsna .:ro nv::i:ana