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

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Author Info
John Ermisch () (ISER, University of Essex and IZA Bonn)
Chiara Pronzato () (ISER, University of Essex)

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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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Publisher 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:
Handle: RePEc:iza:izadps:dp2498

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Related research
Keywords: intra-household allocation; child support;

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June. [Downloadable!] (restricted)
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  2. Del Boca, Daniela & Flinn, Christopher J, 1995. "Rationalizing Child-Support Decisions," American Economic Review, American Economic Association, vol. 85(5), pages 1241-62, December. [Downloadable!] (restricted)
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  3. 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, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
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  7. Weiss, Yoram & Willis, Robert J, 1993. "Transfers among Divorced Couples: Evidence and Interpretation," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 629-79, October. [Downloadable!] (restricted)
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  8. 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.
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  9. 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. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. 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. [Downloadable!] (restricted)
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  12. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Marco Francesconi & Helmut Rainer & Wilbert van der Klaauw, 2009. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," CRIEFF Discussion Papers 0901, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
    Other versions:
  2. 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. [Downloadable!]
    Other versions:
  3. Melanie Lührmann & Jürgen Maurer, 2008. "Who wears the trousers? A semiparametric analysis of decision power in couples," MEA discussion paper series 08168, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  4. Figari F & Immervoll H & Levy H & Sutherland H, 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. [Downloadable!]
    Other versions:
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