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Child support reform: some analysis of the 1999 white paper

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Paull, Gillian, Walker, Ian, 1954- and Zhu, Y. (Yu) (1999) Child support reform: some analysis of the 1999 white paper. Working Paper. University of Warwick, Department of Economics, Coventry.

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Abstract

This paper uses a sample of lone mothers (and former lone mothers who are now repartnered) drawn from the 1997 Family Resources Survey to analyse the potential effects of reforming the UK system of Child Support. The main deficiency of the data is that non-resident fathers cannot be matched to the mothers in the data and this is overcome by exploiting information from another dataset which gives the joint distribution of the characteristics of separated parents. The effects of reforming the Child Support system is simulated for the amount of maintenance liabilities, the amount paid and the net incomes of households containing mothers with care and households containing non-resident fathers. The likely effects of the reform are simulated at various levels of compliance. The analysis highlights the need for further research into the incentive effects of Child Support on individual behaviour.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HV Social pathology. Social and public welfare
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Child support -- Great Britain, Child welfare -- Great Britain, Welfare economics, Great Britain -- Economic conditions -- 1997-, Great Britain -- Social conditions -- 1997-
Series Name: Warwick economic research papers
Publisher: University of Warwick, Department of Economics
Place of Publication: Coventry
Date: October 1999
Number: No.539
Number of Pages: 37
Status: Not Peer Reviewed
Access rights to Published version: Open Access
Funder: Nuffield Foundation (NF), University of Keele
References: Bartfeld, J. (1998), “Child support and the post-divorce economic well-being of mothers, fathers and children”, University of Wisconsin-Madison Institute for Research on Poverty, Discussion paper 1182-98. Beron, K.(1988a), “Applying the econonomic mnodel of crime to child support enforcement”, Review of Economics and Statistics 70, 382-390. Beron, K. (1988b), “Child support payment behaviour: an econometric decomposition”, Southern Economic Journal, 20, 650-663. Beron, K. (1990), “Policy issues and child support payment behaviour: empirical findings”, Contemporary Policy Issues, 8, 124-134. Bianchi, S.M., Subaiya, L. and Khan, J. (1997), “Women’s economic independence within marriage and their relative well-being after separation”, mimeo. Bingley, P., Symons, E and I. Walker (1995), “Child support, income support and lone mothers”, Fiscal Studies, 15, 81-98. Bingley, P., Lanot, G., Symons, E and I. Walker (1995), “Child support reform and the labour supply of lone mothers in the UK”, Journal of Human Resources, 30, 256-279. Bingley, P. and I. Walker, (1997), “The labour supply, unemployment and participation of lone mothers in in-work transfer programmes”, Economic Journal, 107, 1375-1390. Bingley , P and I. Walker, (1998), “Labour supply and in-work and in-kind transfers”, Keele University Working Paper. Blundell, R.W and T. MaCurdy, “Labour supply: A review of alternative Approaches”, IFS Working Paper 98/18, forthcoming in O. Ashenfelter and D. Card (eds.) Handbook of Labour Economics, North Holland, 1999. Corden, A., “European Approaches to Child Maintenance Payments”, JRF Finding, June 1999. Child Poverty Action Group, Child Support Handbook: 7th Edition, 1999/2000, PWCAG, 1999. DSS, A new contract for welfare: children's rights and parents' responsibilities, Cm4349, HMSO, July 1999. Del Boca, D. and C.J. Flinn, “Rationalising Child Support Decisions”, American Economic Review, 85, 1241-1262, 1995 R. Freeman & J. Waldfogel, “Dunning Delinquent Dads – the Effects of Child Support Enforcement on Receipt by Never Married Mothers”, NBER Working Paper 6664, 1998 Garfinkel, I. and D.T. Oellierich (1989), “Noncustodial fathers’ ability to pay child support”, Demograpghy, 26, 219-233. Garfinkel , I. et al (1999a), Fathers under Fire: The Revolution in Child Support Enforcement, Russell-Sage Foundation, New York. Garfinkel, I., Robins, P.K., Wong, P., and D.R. Mayer, (1999b), “The Wisconsin Child Support System: Estimated Effects on Poverty, Labour Supply, Caseloads and Costs”, Journal of Human Resources, 25, 1-31. HMSO (1999), “A New Contract for Welfare: Children’s Rights and Parents’ Responsibilities”, Cm 4349. Hu, W-Y. (1999), “Child support, welfare dependency and women’s labor supply”, Journal of Human Resources, 34, 71-103. Keane, M. and R. Moffitt, (1998), “A Structural Model of Multiple Welfare Program Participation and Labor Supply”, International Economic Review, 39, 553-89 Jenkins, S.J. and J. Millar (1989), “Income risk and income maintenance: implications for incentives to work”, in A. Dilnot and I. Walker (eds.), The Economics of Social Security, Cambridge University Press. Lin, W. (1997),“Perceived Fairness and Compliance with Child Support Obligations”, University of Wisconsin-Madison IRP Discussion Paper 1150 Preston, I.P. and I. Walker, “Welfare measurement in labour supply models with nonlinear budget constraints”, Journal of Population Economics, 12, 343-361, 1999. Meyer, D.R. (1993), “Child support and welfare dynamics: evidence from Wisconsin”, Demography, 30, 45-62. Meyer , D.R. (1995), “The effect of child support reforms on the economic status on nonresident fathers”, mimeo. Meyer, D. R. (1996), “Supporting Children Born Outside Marriage – Do Child Support Orders Keep Pace with Fathers’ Incomes?”, Social Science Quarterly, 76, 557-93. Meyer, D. R. and M-C Hu, “A Note on the Effectiveness of Child Support Among Mother Only Families”, mimeo, University of Wisconsin-Madison, 1997 Moffitt, R. (1984), “The Estimation of a Joint Wage-Hours Labor Supply Model”, Journal of Labor Economics, 2, 550-66. Robins, P.K. (1986), “Child support, welfare dependency and poverty”, American Economic Review, 76, 768-788. US Census Bureau (1991), “Child support and alimony”, CPS Report P-60, 173.
URI: http://wrap.warwick.ac.uk/id/eprint/1636

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