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

32 Pages Posted: 11 Jan 2007

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)

Date Written: December 2006

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.

Keywords: intra-household allocation, child support

JEL Classification: D12, D13

Suggested Citation

Ermisch, John F. and Pronzato, Chiara, Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers' Child Support Payments (December 2006). IZA Discussion Paper No. 2498. Available at SSRN: https://ssrn.com/abstract=955816

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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