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Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers’ Child Support Payments

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  • Ermisch, John

    () (University of Oxford)

  • Pronzato, Chiara D.

    () (University of Turin)

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 paper exploits within-father variation in the British Household Panel Survey (1991-2003) to estimate the impacts of 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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2498.

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Length: 32 pages
Date of creation: Dec 2006
Date of revision:
Publication status: published in: Economic Journal, 2008, 118 (527), 347-362
Handle: RePEc:iza:izadps:dp2498

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Keywords: intra-household allocation; child support;

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References

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  1. 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.
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  4. Del Boca, D. & Flinn, C.J., 1993. "Rationalizing Child Support Decisions," Working Papers 93-16, C.V. Starr Center for Applied Economics, New York University.
  5. Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
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  9. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June.
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Citations

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Cited by:
  1. Melanie Lührmann & Jürgen Maurer, 2007. "Who wears the trousers? A semiparametric analysis of decision power in couples," CeMMAP working papers CWP25/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Timo Hener, 2010. "Do Couples Bargain over Fertility? Evidence Based on Child Preference Data," Ifo Working Paper Series Ifo Working Paper Nr. 92, Ifo Institute for Economic Research at the University of Munich.
  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. repec:ese:iserwp:2007-28 is not listed on IDEAS
  5. Marco Francesconi & Helmut Rainer & Wilbert van der Klaauw, 2007. "The Effects of In-Work Benefit Reform in Britain on Couples: Theory and Evidence," CRIEFF Discussion Papers 0709, Centre for Research into Industry, Enterprise, Finance and the Firm.
  6. Figari, Francesco & Immervoll, Herwig & Levy, Horacio & Sutherland, Holly, 2007. "Inequalities within couples: market incomes and the role of taxes and benefits in Europe," EUROMOD Working Papers EM6/07, EUROMOD at the Institute for Social and Economic Research.

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