This study examines the effect of family structure on consumption expenditure by using multiple regression analysis on data of nine recent Report on the Survey of Personal Income Distribution in Taiwan Area of the Republic of China. The methodologies of this study are Ordinary Least Squares (OLS) and Two-stage Least Squares (2SLS).2SLS can overcome the endogenous problem of family structure which may leads to confounding results of OLS. 2SLS uses the sex of the firstborn child as an instrument to family structure. This study finds that offer controlling for family backgrounds and omitted variables by using 2SLS, that effect of family structure on personal consumption expenditure is not significant.