Expensive Children in Poor Families: Out‐of‐Pocket Expenditures for the Care of Disabled and Chronically Ill Children in Welfare Families

A significant minority of poor families care for children with disabilities and chronic illnesses. This study is among the first to explore private costs resulting from children's disabilities among low‐income families. We find that almost half of the sample of California AFDC families with special‐needs children incurred some direct, out‐of‐pocket expenses in the preceding month, and about 20% incurred total costs exceeding $100. We also estimate lost employment income among low‐income mothers caring for children with disabilities. We conclude that both out‐of‐pocket expenses and foregone earnings represent a substantial burden for many low‐income families with special‐needs children, and we discuss the policy implications of these findings.