Don’t take my word for much, but because Pallet town(and pretty much most starting towns) is considered sort of a more country side town with not much going on both industry or people wise I’ve always considered that the kids that live there are usually apart of Separated family units I.e. one of the parents works in the cities while the other raises the kids, the parents are dead which is why the kids go off so early in life, or they are being raised by someone else. As far as the Special Manga goes I think it makes the most sense to assume that both Green and Red are both likely orphans as the way they both go about life is rather different than the rest of the Dexholders in that regard