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

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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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2498
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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. Mikhail Freer & Khushboo Surana, 2023. "Stable Marriage, Children, and Intrahousehold Allocations," Papers 2302.08541, arXiv.org.
    3. Martina Mys kov, 2010. "Income Inequalities within Couples in the Czech Republic and European Countries," LIS Working papers 552, LIS Cross-National Data Center in Luxembourg.
    4. 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.
    5. Fabrizio Bernardi & Diederik Boertien, 2017. "Explaining Conflicting Results in Research on the Heterogeneous Effects of Parental Separation on Children’s Educational Attainment According to Social Background," European Journal of Population, Springer;European Association for Population Studies, vol. 33(2), pages 243-266, May.
    6. Francesconi, Marco & Rainer, Helmut & van der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," IZA Discussion Papers 3891, Institute of Labor Economics (IZA).
    7. 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.
    8. Cobb-Clark Deborah A. & Harmon Colm & Staneva Anita, 2021. "The bilingual gap in children's language, emotional, and pro-social development," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-41, January.
    9. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    10. 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 of Labor Economics (IZA).
    11. 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.
    12. 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.
    13. 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.
    14. 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).
    15. 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.

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    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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