E C O N O M I C R E P O R T O F T H E P R E S I D E N T

ticularly in the lower income ranges (Chart 5-7). The distribution of femaleheadedfamilies with children, however, is more concentrated in the lowerincome range.The income differences across families shown in Chart 5-7 are due largely todifferences in earned income from employment, not differences in wealth ortransfer payments (such as welfare payments). In 1998, wage and salary earningsrepresented 87 percent of income for the average married-couple family withchildren and 69 percent for the average female-headed family with children.Differences in hours worked are a major factor accounting for differencesin income across family types. Not surprisingly, dual-earner couples devotemore total hours to work than the other family types, on average, and havethe highest concentration of families in the portion of the distribution withthe most hours worked (Chart 5-8). Among single-earner family types, husbandsin single-earner couples work more hours on average than singlemothers.The Rising Earnings of Women with ChildrenThe typical mother today now contributes significantly more earnings tofamily money income than did her counterpart several decades ago. Themedian earnings of single mothers with children rose from $4,800 to$12,000 (in 1998 dollars) between 1968 and 1998, and among working sin-Chapter 5 | 177