Maternal Wealth Implications of Child Incarceration: Examining the Upstream Consequences of Children's Incarceration for Women's Assets, Homeownership, and Home Equity

Abstract Qualitative research has documented mothers’ critical role in supporting adult children during and after incarceration. Yet, the implications of incarceration for mothers have been relatively unexplored. Wealth research has also largely overlooked the influence of adult children on parental wealth. Using linked mother–child data from the National Longitudinal Survey of Youth 1979 (NLSY79) and the NLSY79 Child and Young Adult study, we investigate whether a child's incarceration influences mothers’ wealth and whether accounting for child incarceration history helps explain the racial wealth gap. We use an event-study analysis and fixed-effects models to assess the evidence that children's incarceration affects three forms of wealth: financial assets, homeownership, and home equity. We find significant relationships between child incarceration and maternal wealth, but the importance of current versus prior child incarceration depends on the type of wealth considered. We also find that child incarceration is much more detrimental in dollar terms for White women than for Black or Hispanic women, but the financial asset penalty associated with child incarceration is larger in percentage terms for Black women than for White women.