This paper considers the following dimensions of the change in household composition of the United States population between 1960 and 1980: (1) a decrease in the number of households headed by a couple; and (2) a decrease in the number of children per household. Examination of census figures from 1960, 1970, and 1980 reveals that blacks and whites both experienced these shifts, as did both males and females. The shifts were larger for blacks than for whites. The number of female-headed black households increased, and this acted to increase racial economic inequality. However, the decrease in the number of children per household acted to decrease racial inequality. As a result, the level of racial economic inequality remained constant. Economic welfare inequality increased between black males and females, but not between white males and females. The primary cause of sexual economic inequality, particularly for blacks and whites aged 20 to 39, was the increase of households headed by a single person. Inequality between black and white females were due to both composition changes. Because of the shift to female-headed households, black children became worse off than white children, females aged 20 to 39 became worse off than similar males, and black women became worse off than white women. Blacks would have become much worse off than whites if it were not for the decrease in the birth rate. Data are presented on 12 tables. A brief list of references is included. (BJV)