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Child Support And Mothers‘ Employment

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  • JOHN W. GRAHAM

Abstract

Previous research has found that child support receipts deter mothers' labor supply less than does other non‐wage income. This paper argues that because child support is a variable income source, actual receipts may differ from unobservable permanent receipts on which hours worked are based. This introduces an errors‐in‐variables bias causing the estimated income effect of child support on hours worked to be biased toward zero. When one replaces actual receipts with predicted permanent receipts, such income effect is found to be statistically indistinguishable from that of other non‐wage income.

Suggested Citation

  • John W. Graham, 1990. "Child Support And Mothers‘ Employment," Contemporary Economic Policy, Western Economic Association International, vol. 8(1), pages 95-109, January.
    • Handle: RePEc:bla:coecpo:v:8:y:1990:i:1:p:95-109
    DOI: 10.1111/j.1465-7287.1990.tb00584.x
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    Cited by:

    1. Ilyar Heydari Barardehi & Patryk Babiarz & Teresa Mauldin, 2020. "Child Support, Consumption, and Labor Supply Decisions of Single-Mother Families," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 530-541, September.
    2. Catalina Amuedo-Dorantes & Susan Pozo, 2012. "Remittance Income Volatility and Labor Supply in Mexico," Southern Economic Journal, John Wiley & Sons, vol. 79(2), pages 257-276, October.
    3. Cuesta, Laura & Cancian, Maria, 2015. "The effect of child support on the labor supply of custodial mothers participating in TANF," Children and Youth Services Review, Elsevier, vol. 54(C), pages 49-56.
    4. Catalina Amuedo-Dorantes & Susan Pozo, 2012. "Remittance Income Volatility and Labor Supply in Mexico," Southern Economic Journal, Southern Economic Association, vol. 79(2), pages 257-276, October.

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