Parents’ Separation: What Is The Effect On Parents’ and Children’s Time Investments?

This paper investigates the effect of parental separation on children's allocation of their time and on the time spent with their parents. Based on detailed time-use diaries from the Panel Study of Income Dynamics - Child Development Supplement, I estimate an individual fixedeffects model and find that being in a single-parent family decreases time spent with at least one parent present by 18% of a standard deviation. Time spent with both parents together and alone with the non-custodial parent is greatly affected, but the custodial parent partially compensates for this decrease. The decrease in time spent with at least one parent involved in an activity is, however, not statistically significant. Parents seem to preserve time spent with their children when the child is younger at separation. Children whose parents are more highly educated are also less affected with regard to engaged time if they are in single-mother families. Time spent with a step-parent does not act as a recovery channel ; but time spent with a grandparent increases in single-mother families.