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Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers’ Child Support Payments

Author

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  • Ermisch, John

    () (University of Oxford)

  • Pronzato, Chiara D.

    () (University of Turin)

Abstract

A large proportion of divorced and separated fathers form new partnerships. The new partner’s preferences are not likely to put much weight on expenditures on the man’s children from his previous union. Thus, his own and his partner’s income would have different impacts on his child support payments if partners’ relative incomes affect bargaining power in household decisions. This paper exploits within-father variation in the British Household Panel Survey (1991-2003) to estimate the impacts of intra-household income distribution on child support payments and the father’s welfare. We find that a higher share of father’s income in household income increases the probability of paying child support and its amount relative to household income.

Suggested Citation

  • Ermisch, John & Pronzato, Chiara D., 2006. "Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers’ Child Support Payments," IZA Discussion Papers 2498, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2498
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    1. M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
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    Cited by:

    1. Timo Hener, 2010. "Do Couples Bargain over Fertility?: Evidence Based on Child Preference Data," SOEPpapers on Multidisciplinary Panel Data Research 323, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Figari, Francesco & Immervoll, Herwig & Levy, Horacio & Sutherland, Holly, 2007. "Inequalities Within Couples: Market Incomes and the Role of Taxes and Benefits in Europe," IZA Discussion Papers 3201, Institute for the Study of Labor (IZA).
    3. Marco Francesconi & Helmut Rainer & Wilbert vanderKlaauw, 2009. "The Effects of In-Work Benefit Reform in Britain on Couples: Theory and Evidence," Economic Journal, Royal Economic Society, vol. 119(535), pages 66-100, February.
    4. Martina Mysíková, 2010. "Income Inequalities within Couples in the Czech Republic and European Countries," LIS Working papers 552, LIS Cross-National Data Center in Luxembourg.
    5. Bellido, Héctor & Molina, José Alberto & Solaz, Anne & Stancanelli, Elena, 2016. "Do children of the first marriage deter divorce?," Economic Modelling, Elsevier, vol. 55(C), pages 15-31.
    6. Cécile Bourreau-Dubois & Myriam Doriat-Duban & Jean-Claude Ray, 2014. "Child support order: how do judges decide without guidelines? Evidence from France," European Journal of Law and Economics, Springer, vol. 38(3), pages 431-452, December.
    7. Melanie Lührmann & Jürgen Maurer, 2007. "Who wears the trousers? A semiparametric analysis of decision power in couples," CeMMAP working papers CWP25/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    8. repec:spr:eurpop:v:33:y:2017:i:2:d:10.1007_s10680-017-9417-5 is not listed on IDEAS
    9. Francesconi, Marco & Rainer, Helmut & van der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," IZA Discussion Papers 3891, Institute for the Study of Labor (IZA).
    10. Bastian Hartmann, 2014. "Unterhaltsansprüche und deren Wirklichkeit: wie groß ist das Problem nicht gezahlten Kindesunterhalts?," SOEPpapers on Multidisciplinary Panel Data Research 660, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Marco Francesconi & Helmut Rainer & Wilbert Klaauw, 2015. "Unintended consequences of welfare reform for children with single parents: a theoretical analysis," Review of Economics of the Household, Springer, vol. 13(3), pages 709-733, September.
    12. Tak Chan & John Ermisch, 2015. "Proximity of Couples to Parents: Influences of Gender, Labor Market, and Family," Demography, Springer;Population Association of America (PAA), vol. 52(2), pages 379-399, April.

    More about this item

    Keywords

    intra-household allocation; child support;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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