This paper studies the determinants of partnership dissolution and focuses on the role of child support. We exploit the variation in child support liabilities driven by an important UK policy reform to separately identify the effects of children from the effect of child support liability. We find strong evidence that an increase in the child support liability significantly reduces dissolution risk. Our results suggest that child support criteria that are based on the non-custodial parent's income, compared to criteria based on aggregate incomes of both parents, would imply much smaller separation rates.
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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number
0408.
Length: Date of creation: Aug 2004 Date of revision: Handle: RePEc:ukc:ukcedp:0408
Contact details of provider: Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP Phone: +44 (0)1227 764000 Fax: +44 (0)1227 827850 Web page: http://www.ukc.ac.uk/economics/
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