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Intra-Household Allocation of Resources: Inferences from Non-resident Fathers' Child Support Payments

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  • John Ermisch
  • Chiara Pronzato

Abstract

A large proportion of divorced and separated fathers form new partnerships. The new partner's preferences are not likely to put much weight on expenditures on the man's children from his previous union. Thus, his own and his partner's income would have different impacts on his child support payments if partners' relative incomes affect bargaining power in household decisions. This article exploits within-father variation in the British Household Panel Survey (1991-2005) to estimate the impacts of the intra-household income distribution on child support payments and the father's welfare. We find that a higher share of father's income in household income increases the probability of paying child support and its amount relative to household income. Copyright � 2008 The Author(s).

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 118 (2008)
Issue (Month): 527 (03)
Pages: 347-362

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Handle: RePEc:ecj:econjl:v:118:y:2008:i:527:p:347-362

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  1. Kaushik Basu, 2006. "Gender and Say: a Model of Household Behaviour with Endogenously Determined Balance of Power," Economic Journal, Royal Economic Society, vol. 116(511), pages 558-580, 04.
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  3. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
  4. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
  5. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
  6. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
  7. Iftikhar Hussain, 2006. "Consumer Demand and the Role of Labour Supply and Durables," Economic Journal, Royal Economic Society, vol. 116(510), pages C110-C129, 03.
  8. Del Boca, Daniela & Flinn, Christopher J, 1995. "Rationalizing Child-Support Decisions," American Economic Review, American Economic Association, vol. 85(5), pages 1241-62, December.
  9. Weiss, Y. & Willis, R.J., 1990. "Transfers Among Divorced Couples: Evidence And Interpretation," University of Chicago - Economics Research Center 90-4, Chicago - Economics Research Center.
  10. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  11. Weiss, Yoram & Willis, Robert J, 1985. "Children as Collective Goods and Divorce Settlements," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 268-92, July.
  12. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  13. Marcos A. Rangel, 2006. "Alimony Rights and Intrahousehold Allocation of Resources: Evidence from Brazil," Economic Journal, Royal Economic Society, vol. 116(513), pages 627-658, 07.
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Cited by:
  1. Bastian Hartmann, 2014. "Unterhaltsansprüche und deren Wirklichkeit: wie groß ist das Problem nicht gezahlten Kindesunterhalts?," SOEPpapers on Multidisciplinary Panel Data Research 660, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. repec:ese:emodwp:em6-07 is not listed on IDEAS
  3. Francesconi, Marco & Rainer, Helmut & Van Der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," CEPR Discussion Papers 7107, C.E.P.R. Discussion Papers.
  4. Francesconi, Marco & Rainer, Helmut & Klaauw,, 2009. "The effects of in-work benefit reform in Britain on couples: Theory and evidence," Munich Reprints in Economics 20334, University of Munich, Department of Economics.
  5. Melanie Lührmann & Jürgen Maurer, 2008. "Who wears the trousers? A semiparametric analysis of decision power in couples," MEA discussion paper series 08168, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  6. Timo Hener, 2010. "Do Couples Bargain over Fertility?: Evidence Based on Child Preference Data," SOEPpapers on Multidisciplinary Panel Data Research 323, DIW Berlin, The German Socio-Economic Panel (SOEP).
  7. Francesconi, Marco & Rainer, Helmut & Klaauw,, 2013. "Unintended consequences of welfare reform for children with single parents: a theoretical analysis," Munich Reprints in Economics 20333, University of Munich, Department of Economics.

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