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Do Non-Resident Parents with Lower Labor Market Attachment React to Institutional Changes in Child Support Obligations? Evidence from IAB-PASS

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  • Schaubert, Marianna
  • Hänisch, Carsten

Abstract

This paper investigates how parents who live apart from their children have responded to changes in the amount of the self-support reserves. Being financially able to pay maintenance is a precondition for the obligation to maintain children in Germany. Parents with incomes below the self-support reserve do not pay child support. In addition, the self-support reserve di ers for employed and unemployed parents. The difference between the two is considered to be a bonus for employment by competent courts, which they adjust over time. We exploited PASS panel data and individual fixed-effects models to observe parents' responses to these changes. We did not confirm the Higher Regional Courts' assertion that the increasing difference between the self-support reserves of employed and non-working parents is an incentive to work. Further, we found no evidence of any influence on attitudes towards the labor market or debt behavior.

Suggested Citation

  • Schaubert, Marianna & Hänisch, Carsten, 2020. "Do Non-Resident Parents with Lower Labor Market Attachment React to Institutional Changes in Child Support Obligations? Evidence from IAB-PASS," EconStor Preprints 214624, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:214624
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    More about this item

    Keywords

    Child support; low-income nonresidential fathers; child support guidelines; child support enforcement; labor supply; child support debt;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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