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

16 Pages Posted: 26 Feb 2008

See all articles by John Ermisch

John Ermisch

University of Oxford; IZA Institute of Labor Economics

Chiara Pronzato

University of Essex - Institute for Social and Economic Research (ISER)

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 article exploits within-father variation in the British Household Panel Survey (1991-2005) to estimate the impacts of the 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 F. and Pronzato, Chiara, Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers Child Support Payments. The Economic Journal, Vol. 118, Issue 527, pp. 347-362, March 2008, Available at SSRN: https://ssrn.com/abstract=1096377 or http://dx.doi.org/10.1111/j.1468-0297.2007.02124.x

John F. Ermisch (Contact Author)

University of Oxford ( email )

Manor Road
Oxford, OX2
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Chiara Pronzato

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

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