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What is the economically and socially optimised child support?

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  • Erzsébet Teréz Varga

    (Corvinus University of Budapest)

Abstract

The study is based on the principle that children with divorced parents should have the same standard of living as their parents, both parents. Access to education, nourishment and extracurricular activities should be supported at the same level after divorce as before to ensure undisrupted development of the children. This study approaches the sensitive topic of child support payment objectively, adopting well-known techniques from operations research, with the goal to provide a guide to determine “optimised child support payment”. The proposed guide for decision makers aims to mitigate the probability of rising inequality in the separated family and through it in the society as well as reducing the risk of single-parent units slipping into poverty. Using simulations based on German child support data, a dynamic, globally applicable child support payment model is proposed. The objective function is to minimize the differences in the equivalised income of the separated family units, thereby, reducing risk of poverty and the financial stress for the custodial partner. The proposed child support payment scheme is well-defined and child focused and it potentially could address a serious real-world problem, the increasing risk of poverty after divorce for the child and the custodial parent.

Suggested Citation

  • Erzsébet Teréz Varga, 2024. "What is the economically and socially optimised child support?," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(1), pages 131-154, March.
    • Handle: RePEc:spr:cejnor:v:32:y:2024:i:1:d:10.1007_s10100-023-00865-1
    DOI: 10.1007/s10100-023-00865-1
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    References listed on IDEAS

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    1. Sarah Fores & Jakob Krarup, 2013. "On the origins of OR and its institutions," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(2), pages 265-275, March.
    2. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    3. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    4. Dorothée Boccanfuso & Bernard Decaluwé & Luc Savard, 2008. "Poverty, income distribution and CGE micro-simulation modeling: Does the functional form of distribution matter?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(2), pages 149-184, June.
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    Cited by:

    1. Péter Biró & Sándor Bozóki & Tamás Király & Alexandru Kristály, 2024. "Optimization methods and algorithms," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(1), pages 1-9, March.

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