Rajchman of Poland was elected Chairman of the Board, and Maurice Pate of the United States was appointed Executive Director.

The Fund is to be administered in accordance with principles adopted by the Economic and Social Council and its Social Commission. Under the terms of the Assembly resolution, countries desiring assistance must make provision for submitting reports on the use of supplies and other assistance and for equitable and efficient dispensation or distribution of all supplies or assistance, on the basis of need, without discrimination because of race, creed, nationality status, or political belief. The Fund is not to engage in activity in any country except in consultation with, and with the consent of, the government concerned.

Estimated Resources

The sources of support for the Fund will consist of any assets made available by UNRRA and any voluntary contributions from governments, voluntary agencies, individuals, or other sources. In its resolution the General Assembly called upon governments, voluntary agencies, and individuals to give the Fund their generous support.

The Fund is directed by the resolution creating it to "appeal to all voluntary relief agencies to continue and intensify their activities" and to "take necessary measures in order to cooperate with these agencies." The Board may invite representatives of specialized agencies of the United Nations for consultation, and their staff and technical assistance are to be utilized to the maximum extent feasible. The Fund may also use such staff, equipment, and records as may be made available by UNRRA while it is still in existence.

As directed by the resolution establishing the Fund, the Executive Board made a report to the Fourth Session of the Economic and Social Council, including in the report a preliminary statement on recommended programs and estimate of expenses for 1947. As the report pointed out, when the Fund was established it was anticipated that by the time the Executive Board reported to the Economic and Social Council several countries would have made formal application to the Fund for assistance, and that the Fund would have been able to

weigh these requests against its prospective resources and recommend precise allocations. As yet, however, the Fund possesses no resources except the original contribution of $550,000 received through Fiorello La Guardia while he was Director General of UNRRA, from a special collection for food relief in Europe made in the United States in 1946. This contribution is available only for food, and none of it can be used for administrative expenses. The Executive Board was informed that the problems involved in the liquidation of UNRRA are such as to make it impossible to determine for some time what residual assets there may eventually be for transfer to the International Children's Fund. The Fund will not begin operations until sufficient resources are available to carry on worth while activities.

Proposed Operations

General policies on the operation of the Fund are developed by a Program Committee of the Executive Board, consisting of representatives of eight countries and the SecretaryGeneral. A letter pointing out the needs of the Fund was sent by the Acting Secretary-General to all governments that are members of the United Nations. Appended to this letter was a memorandum describing the Fund and its proposed methods of operation. Committee work and individual conferences have further stressed the importance of immediate contributions from governments, for it has been recognized that, in the first stage of operation at least, the major resources must come from this source, because of the time required for working out with representatives of voluntary agencies and other organizations adequate methods of voluntary collections.

In its report to the Economic and Social Council the Executive Board of the Fund estimated that some 30 million children in Europe alone, and an equal if not greater number in the Far East, are today in urgent need of supplementary aid.

The program contemplated by the Fund is designed in the first instance to aid countries eligible for assistance to provide for children a supplementary meal that includes special and additional foods required t

re

health and growth. These are not attainable within the basic ration.

The Board estimated that, beyond doubt, at least 20 million children in countries eligible for assistance should receive a supplementary, midday meal of approximately 700 calories. Since the cost of such a meal is estimated at about 6 cents a day, or $20 a year, the cost of reaching 20 million children with such assistance would be about $400 million. In the opinion of the Board such a sum would cover the requirements only of those most urgently in need of a supplementary meal, and at least another 20 million children would benefit greatly from such assistance, were sufficient resources to be made available.

A large part of this $400 million, it was estimated, would be borne by the recipient countries in supplies, warehousing, transportation, and services, but at least $200 million of outside assistance would be required. This, according to the Board's report, is an estimate of requirements over and above external assistance for general relief purposes for such countries as may receive such assistance. The amount of contributions by recipient countries would depend on the level of the basic ration these countries are able to maintain, including supplies provided through outside assistance for general relief. The supplies furnished by donor countries would vary in accordance with the kinds of food available for export in those countries.

It was pointed out in the report to the Economic and Social Council that "supplementary assistance might also take the form of the provision of clothing, medical supplies or equipment for children's institutions; nor must one preclude the possibility of other special projects, the need for which would appear as detailed information was received from the countries in need."

The Executive Board has recognized that need in the countries of the Far East is clearly as great as, if not greater than, the need in Europe. Equal consideration is being given to this problem, but it is too early to give an estimate that would be of any value.

In its report to the Council the Board gave the following tentative division of expenditure by the Inter

national Children's Emergency Fund per $1 million contributed:

Total

Milk and supplementary fats_
High protein foods.
Cocoa

$1,000,000

678, 000 115,000 22, 000 16,000

169,000

Cod liver oil or substitutes... Clothing, medical supplies and other equipment----The sum of $1 million would probably care for about 85,000 children.

It is hoped that in addition to the child-feeding program, which is planned to reach also expectant and nursing mothers, the Fund will be able to give some assistance in encouraging the rehabilitation of children's institutions.

The cooperation of the World Health Organization has been enlisted in training personnel for health work. A certain percentage of the fellowships provided by the Interim Committee of the Organization will be assigned for maternal and child health work. The program of advisory welfare services being developed by the United Nations should also be of some assistance in training child welfare personnel.

The Social Commission's Recommendations

The Social Commission, meeting from January 20 through February 5 of this year, received a report of the International Children's Fund. In its report to the Economic and Social Council the Commission expressed its approval of the Fund's report and urged that both the Executive Board and the Council give first priority to the problem of raising additional funds from governmental and nongovernmental sources, so that the Fund will be ready to start work as soon as UNRRA ceases to operate. The Commission, in harmony with the information contained in the Fund's report and the resolution adopted by the General Assembly, formulated a statement of principles which it recommended should be adopted by the Economic and Social Council as principles of operation of the Fund. Included in these principles are a statement of priorities and the following declaration concerning the relation of emergency measures to existing programs:

Emergency measures shall be so developed and administered as to utilize and strengthen the permanent

738436-47--2

child health and child welfare programs of the countries receiving assistance and promote effective coordination of official and voluntary services.

With reference to staff, it was recommended that provision be made for the technical staff needed to ensure effective operation of the Fund and to supply the technical services necessary to achieve its objectives.

Another recommendation dealing with the information required was as follows:

"Governments requesting assistance will submit proposals giving information required by the Executive Board or a committee thereof, as to need for assistance and methods by which the program will be carried out. Such proposals should show how the following requirements will be met:

"(1) Provision for proper and efficient administration of the program.

"(2) Utilization, so far as possible, of existing official and voluntary agencies, with provision made for coordination of the services of all agencies utilized in carrying out the program for which assistance is requested.

"(3) Assurance that supplies and services under the program will be equitably dispensed or distributed on the basis of need without discrimination on the basis of race, creed, nationality status, or political belief.

"(4) Provision for reports for such periods and containing such information as the Executive Board may require."

Economic and Social Council Action In its report to the Economic and Social Council, the Executive Board of the International Children's Emergency Fund declared that perhaps the most difficult part of the estimate was that for the operating and administrative costs of the Fund in 1947. The number of staff members, especially those in the field, will of course vary in accordance with the variety of special projects put into operation, the number of children receiving aid, and the number of countries to which the Fund gives aid. The report assumes that the Secretary-General of the United Nations would give con

siderable help in the form of legal, accounting, publicity, and other services. Technical help, information, and special studies would be requested from specialized agencies, such as the Food and Agriculture Organization, the World Health Organization, and the United Nations Educational, Scientific and Cultural Organization. The FAO and the Interim Commission of the WHO are already cooperating with the Executive Board and the staff of the Fund in various ways. Consideration is being given to a milk study and to the possibility of setting up, under the joint auspices of FAO and WHO, a technical advisory committee on food needs of children. Technical staff will be required at the headquarters of the Fund for planning and review purposes and assistance in developing policies. Field staff will also be necessary to assure that the resources of the Fund are used for the purposes intended, to plan with governments concerning both needs and policies, and to furnish such technical assistance as may be required.

The Economic and Social Council, after considering the Social Commission's report on the International Children's Fund and the reports of the Executive Board itself, adopted a resolution on March 29 approving the conclusions of the report of the Executive Board and transmitting to the Board for its guidance the principles for the operation of the Fund and the recommendations of the Social Commission as amended by the Coun

cil.

Immediate Financial Problems

The problem of contributions from governments is the first concern of the Executive Board. Only government support will enable the Fund to get into operation quickly enough to assist in meeting the 1947 needs. At the March meeting of the Economic and Social Council, New Zealand and Norway indicated that government support for the Fund would be forthcoming. The matter is under consideration by the governments of the United States, Canada, and other countries.

It will be remembered that in creating the Fund the General Assembly authorized contributions from voluntary sources. A plan for a world-wide collection of voluntary funds for re

lief purposes, based on contributions of a day's pay, was presented to the General Assembly in December by Aake Ording of Norway, and the Assembly adopted a resolution favoring the plan in principle and asking the Secretary-General to explore the possibilities of raising funds in this way. After receiving the Secretary-General's report on the explorations that had been made, the Economic and Social Council decided to support the principle of voluntary collection, based either on the day's pay plan or on alternative methods best suited to the conditions in particular countries. The Council adopted the following resolution:

"The Economic and Social Council, taking note of the General Assembly Resolution No. 57 of the same date,

"1. Approves in principle the proposal for a special world-wide appeal for nongovernmental voluntary contributions to meet emergency relief needs of children, adolescents, expectant and nursing mothers, without discrimination because of race, creed, nationality status, or political belief, by way of a "One Day's Pay"

ing and immediately after the war. Policies with reference to foreign relief are coordinated by the Advisory Committee on Voluntary Foreign Aid of the United States Government. During the month of January 1947 the total value of relief sent abroad by American agencies and recorded with the Advisory Committee was $14.1 million. Any plans for a voluntary collection in the United States will be worked out in cooperation with the voluntary agencies as represented by the American Council of Voluntary Agencies for Foreign Service and the Advisory Committee on Voluntary Foreign Aid. It will be at least the latter part of 1947, however, before plans for the collection can be put into operation. In the meantime, existing voluntary agencies will continue handling the problem of immediate relief for children.

Relation to Other Assistance Meas

ures

The proposed governmental and other contributions from the United

States for the International Children's Emergency Fund should not be confused with the President's proposal, submitted to Congress on February 21, for an appropriation of not to exceed $350 million for direct assistance from the United States. The purpose of this appropriation, as of other assistance which may be given directly by the United States, is to provide assistance to countries in maintaining a ration sufficient to give the basic essentials of life. Such relief is a necessary foundation for special children's programs, because the extent to which child relief will be successful in assuring opportunity for health and growth will depend on whether such relief can be, in fact, supplementary, or whether it must be used merely to keep children alive. The International Children's Emergency Fund provides the means for world-wide cooperation in saving children who have suffered grievously from war and its consequences. It is a cause which should command universal and generous support.

of collection better adapted to any particular country;

"2. Requests the Secretary-General to continue his exploration of the most appropriate procedures for carrying forward this work and to make such arrangements as may be necessary for this purpose, taking into account the circumstances, including the foreign exchange position, of each country;

"3. Further requests the SecretaryGeneral to report to the next session of the Economic and Social Council on the progress of this project;

"4. Urges governments to aid and facilitate this voluntary effort on the understanding that agreement will be reached between the SecretaryGeneral and each country (a) as to the disposal of the national collections, and (b) as to the purchase of supplies within the country for use elsewhere;

"5. Authorizes the Secretary-General, after due consultations, to fix a date most suitable for the collection."

Substantial funds for foreign relief have been raised by voluntary organizations in the United States dur

IN MOST SOCIAL INSURANCE Systems contributions are based on individual earnings. Benefits, on the other hand, are, for many programs, varied by size and composition of family. Since lower-paid workers tend to have larger families there is a rough kind of social equity in this departure from the payment of benefits strictly proportional to contributions. How rough is not too well known, since data on contributions and benefits by family income class can be only partially approximated.

It is of course true that, even if all the facts were in, people would still disagree on what is socially equitable. There is considerable value nevertheless in assembling what materials there are as a basis for a discussion of the policy issues involved. Measurement of the impact of social insurance

*Bureau of Research and Statistics, Division of Coordination Studies. Martin Marimont and Sol Ackerman, formerly of the Division, aided in the development of the tables.

taxes and the incidence of benefits by family income classes depends, however, on the availability of data on the number of earners and dependents at varying income levels, and the effect of income differences on size and composition of family.

The present article addresses itself to the analysis of family composition and income relationships. The data are derived from the 1940 census and deal in the main with urban families with income from wages or salary only. Such families numbered 11.1 million or somewhat more than half of the urban families enumerated and a little more than a third of all families in the United States.

Families with income limited to wages or salary were selected because total income was obtained for such families only. (The census schedule included an item for income of $50 or more from other sources but only with respect to its receipt or nonreceipt.) To maximize homogeneity in the data, the analysis was confined to urban families.

The usefulness of the data presented in the article does not lie in the income distribution, which is descriptive of only one segment of the population in 1939 and is not representative of the incomes of families in that segment today, or in the specific averages developed for earners and dependents by income class. These may be expected to change with shifts in the income structure and family composition of the population. Estimates made in the Bureau of Research and Statistics, for instance, suggest that primary dependents, as defined below, may vary from 1.05 to 1.15 per worker, depending on the economic assumption used. The ratio will also be larger or smaller depending on the relative broadness with which the term dependent is defined. The principal value of the estimates lies rather in the magnitude of the differences in earner and dependent ratios among income classes and among families of varying size and composition, and in the direction of the change in the ratio with changes in income, size of family, number of earners, and number of dependents. Definitions.-The family referred to in this article is the census "private family," defined as comprising "a family head and all other persons in the home who are related to the head by blood, marriage or adoption, and who live together and share common housekeeping arrangements." A person living alone is considered a one-person family. An urban family is a family living in an area defined by the Bureau of the Census as urban, generally a city or other incorporated place having 2,500 or more inhabitants. The family head is the person regarded by the other family members as the head. The head is usually the chief earner; in some cases, however, the head is the parent of the chief earner. Children are unmarried family members under age 18 related to the head, but not nec

essarily the children of the head. 1 Among the 19.2 million children in urban families in 1940, 17.8 million, or 93 percent, were children of the head, 1 million were grandchildren, and 0.4 million were other relatives. Wage or salary income includes all money received in 1939 in compensation for work or services performed as employees, including commissions, tips, piece-rate payments, bonuses, and so on, as well as receipts commonly referred to as wages or salaries. The value of income received in kind, such as living quarters, meals, and clothing, is not included. An earner is a person 14 years old or over who reported that he received $1 or more of wage or salary income in 1939. A small number consisted of parttime or seasonal workers, persons not ordinarily in the labor force. Some labor-force members in March 1940, on the other hand, were not classified as earners since they had no earnings in 1939, either because of disability or unemployment or because they were self-employed in 1939 or because they entered the labor force as new members after December 1939. Dependents are wives not in the labor force of family heads who are earners, and unmarried children under 18, not in the labor force, living in a family whose head is a relative and an earner. Such persons are sometimes referred to in the article as primary dependents, since they exclude nonworking parents, disabled husbands, and older children, who could be included in a broader definition of the term dependent. Other persons are family members who are neither earners nor dependents, defined, including nonearner family heads, children over age 18 at school, and other adult relatives of the head not in the labor force.

as

Number of Earners

Most families with wage or salary income have only one earner.1 In

1 For an earlier analysis of family income and family composition, based on the 1935-36 National Health Survey, and using the bio-legal concept of the family as distinguished from the census family concept employed in this article, see the following articles in the Social Security Bulletin: "The Economic Status of Urban Families and Children," May 1939; "Income of Urban Families and Individuals in Single-Family Households," Septem

Families with more earners generally enjoy a larger income. In 1939 more than 9 out of 10 families with incomes below $200 had only one earner. Among families reporting income of $3,000-4,999, only 39 percent had one earner, 35 percent had two earners, and 26 percent had three or more. The influence of number of earners upon family income is illustrated in table 4.

Size of family.-The rise shown in table 4 in average numbers of earners as family income moves up is accompanied, it may be observed, by a concurrent increase in average family size. What is the relation of these three factors?

When families are classified by size, the following pattern emerges:

one used to obtain the averages in table 1 support such a view. They yield a median income of $1,675 for families of four, $1,681 for families of five, $1,653 for families of six, and $1,590 for families of seven or more. The correlation, in other words, is good up to families of five; beyond that point there appears an increasing disparity between size of family and income.

Number of earners, on the other hand, is directly related to size of family and amount of family income:

median wage or salary earnings in 1939 were reported by men in the age class 35-44, whereas the men with the largest average families were in the age class 45-54, when earnings had begun to decline. When it is borne in mind that, in husband-wife families, the average age of the head rises in each successive family size beyond two-person families, the unfavorable effect of the decreasing earnings of older workers on family-size-income relationships in one-earner families may be readily appreciated.

Of somewhat more significance, perhaps, is the influence of occupation on earnings and family size. Among the major occupational classes in the census there appears to be a substantial negative correlation between the two. Family heads classified as laborers, as operatives and kindred workers, and as craftsmen, foremen, and kindred workers had more children in 1940 than heads who were clerical, sales and kindred workers, proprietors, managers and officials, and professional and semiprofessional workers. Median earnings in the first three groups, on the other hand, were considerably smaller than those in the other groups.

For urban families dependent on the earnings of one person only, in summary, the downward trend in income in larger families may be attributed in part to the increase in average age of the head in larger families and the decline in his earnings because of age, but more importantly to the tendency of workers in occupations yielding a lower income to have more children than

MEDIAN INCOME (DOLLARS) 3500

It may be useful to examine first the relationship of family size and income when the number of earners is held constant.

Among one-earner families the same pattern in the trends in size and income may be noted as in all families, that is, median income increases with size up to five persons, then declines. Since the earner in one-earner families was the head in 94 cases out of 100-a ratio which increased with income, reaching 99 percent in families with an income of $5,000 or moresome plausibility attaches to the suggestion that income drops in larger families with one earner because the age at which individual earnings are at their maximum does not coincide with the age of the head at which families are biggest. The highest

3 EARNERS

4 EARNERS

5 OR MORE EARNERS