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Incorporating labor supply responses into the estimated effects of an assured child support benefit

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  • D. R. Meyer
  • R. Y. Kim
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    Abstract

    Assured child support benefits are an important component of many proposals to reform the child support system. The authors estimate the likely effects of assured benefits on poverty and welfare participation when (a) parents eligible for child support work the same number of hours as they currently work and (b) parents eligible for child support change the number of hours they work in order to maximize their income and leisure time. They find that in each situation assured benefits will reduce poverty rates and the poverty gap; welfare caseloads and expenditures will also fall. When parents are allowed to change the number of hours they work, the impact of assured benefits will be about the same, but the costs of the assured benefit program will increase.

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    File URL: http://www.irp.wisc.edu/publications/dps/pdfs/dp103394.pdf
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    Bibliographic Info

    Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1033-94.

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    Handle: RePEc:wop:wispod:1033-94

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    1. John W. Graham & Andrea H. Beller, 1989. "The Effect of Child Support Payments on the Labor Supply of Female Family Heads: An Econometric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 664-688.
    2. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
    3. Irwin Garfinkel & Philip K. Robins & Pat Wong & Daniel R. Meyer, 1990. "The Wisconsin Child Support Assurance System: Estimated Effects on Poverty, Labor Supply, Caseloads, and Costs," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 1-31.
    4. Pencavel, John, 1987. "Labor supply of men: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 1, pages 3-102 Elsevier.
    5. Johnson, Terry R & Pencavel, John H, 1984. "Dynamic Hours of Work Functions for Husbands, Wives, and Single Females," Econometrica, Econometric Society, vol. 52(2), pages 363-89, March.
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    Cited by:
    1. R. Y. Kim & I. Garfinkel & D. R. Meyer, . "Interaction effects of a child tax credit, national health insurance, and assured child support," Institute for Research on Poverty Discussion Papers 1047-94, University of Wisconsin Institute for Research on Poverty.

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