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Visitations and Transfers After Divorce

  • Daniela Del Boca

    ()

  • Rocio Ribero

    ()

Recent research reveals that divorce negatively impacts children's welfare as a consequence of the reduction in monetary and time contributions of the non-custodial parent. After divorce, the variables that link the absent parent to the child are visitations, child support transfers, and direct expenditures the non-custodial parent makes on the child. In our framework parents constitute a bilateral exchange economy where the mother is endowed with control over visitations and the father has control over financial resources. We use data from National Longitudinal Study of the High School Class of 1972 (5th follow up) to estimate the parameters of the model. We then use the estimates to simulate the effects of alternative endowment levels (such as joint custody) on the proportion of time spent with the non-custodial parent and the ex post parental income distribution. The results indicate that an endowment of equal time for both parents, reducing time under the mother's control implies a reduction in the child support transfers from the father, and, therefore, a loss in the mother's consumption levels. However, a more equally shared time with the children also increases the father's direct expenditures on the child, with the effect of allowing the mother to spend less on child goods and partially compensate her consumption loss. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1025045416999
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Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 1 (2003)
Issue (Month): 3 (September)
Pages: 187-204

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Handle: RePEc:kap:reveho:v:1:y:2003:i:3:p:187-204
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  1. 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.
  2. del Boca, D. & Flinn, C.J., 1992. "Expenditure Decisions of Divorced Mothers and Income Composition," Working Papers 92-40, C.V. Starr Center for Applied Economics, New York University.
  3. Daniela Del Boca & R.Ribero, 2000. "The Effect of Child Support Policies on Visitations and Transfers," CHILD Working Papers wp1_01, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  4. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  5. Del Boca, Daniela & Flinn, Christopher J., 1990. "The Effect Of Child Custody And Support Arrangements On The Welfare Of Children And Parents," Working Papers 90-16, C.V. Starr Center for Applied Economics, New York University.
  6. Linda Welling & Marci Bearance, 2001. "Who's Minding the Kids? An Economic Comparison of Sole and Joint Custody," Department Discussion Papers 0101, Department of Economics, University of Victoria.
  7. 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.
  8. Greg Duncan & Saul Hoffman, 1985. "A reconsideration of the economic consequences of marital dissolution," Demography, Springer, vol. 22(4), pages 485-497, November.
  9. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
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