Working Paper: NBER ID: w22227
Authors: Maya Rossin-Slater; Miriam Wüst
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.
Keywords: Child Support; Parental Behavior; Denmark; Administrative Data
JEL Codes: H40; I30; J12; J13; J16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Child Support Obligations (K36) | Noncustodial Father's Payments (K36) |
| Child Support Obligations (K36) | Father-Child Coresidence Likelihood (J12) |
| Child Support Obligations (K36) | Likelihood of Mother Having Additional Child (J13) |
| Child Support Obligations (K36) | Labor Force Participation Among High-Income Fathers (J22) |