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Yet, little research has addressed the ways in which family structures and economic resources have impacted whether children grow up in households that do not include at least one biological parent. In order to address this gap, this paper offers a theoretical framework for estimating the effects of income and poverty, family structure, and income support policies on children's living arrangements. Its empirical implications are tested using data from the NLSY. The sample consists of 28,143 observations of families with children 18 years old or younger between 1986 and 1998. Probit models are used to estimate the probability that children from both single- and two-parent families are living in various out-of-home care arrangements. Results suggest that lower-income families, as well as single-parent and mother-partner families, are more likely to have a child living out-of-home in a given year. Higher AFDC/TANF benefits are associated with decreases in the probability that a family has a child living in a child welfare service setting, but increases in the probability that a family has a child living with relatives. Additionally, higher foster care payments are associated with increases in children living out-of-home.