Parental Responses to Child Support Obligations: Evidence from Administrative Data

77 Pages Posted: 9 May 2016 Last revised: 27 Mar 2021

See all articles by Maya Rossin-Slater

Maya Rossin-Slater

University of California, Santa Barbara (UCSB) - Department of Economics

Miriam Wüst

The Danish National Centre for Social Research

Date Written: May 2016

Abstract

We leverage non-linearities in Danish child support guidelines and rich administrative data to provide causal estimates of parental behavioral responses to child support obligations. We estimate that a 1,000 DKK ($149) increase in a father's obligation is associated with a 506 DKK ($75) increase in his payment. A higher obligation also reduces father-child co-residence, pointing to substitution between financial and non-pecuniary investments. Further, obligations increase parental post-separation fertility, and reduce labor supply among high-income fathers. Our findings suggest that government efforts to increase child investments through mandates on parents can be complicated by their behavioral responses to them.

Suggested Citation

Rossin-Slater, Maya and Wüst, Miriam, Parental Responses to Child Support Obligations: Evidence from Administrative Data (May 2016). NBER Working Paper No. w22227, Available at SSRN: https://ssrn.com/abstract=2777315

Maya Rossin-Slater (Contact Author)

University of California, Santa Barbara (UCSB) - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States

Miriam Wüst

The Danish National Centre for Social Research ( email )

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