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Child Support and Income Inequality

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  • Yoonsook Ha
  • Maria Cancian
  • Daniel R. Meyer

Abstract

Child support contributes to many custodial‐mother families’ income, yet there are persistent concerns that many noncustodial fathers have low‐wage, unstable jobs that limit their ability to pay child support. Thus, child support may exacerbate inequality—that is, it may transfer resources from a low‐income noncustodial father to a custodial‐mother family that is already better off. These arguments, however, are generally made without reference to couple‐level data. This study uses multiple sources of Wisconsin administrative data to construct measures of income, including earnings, public transfers, and tax liabilities and benefits, on matched pairs of custodial and noncustodial parents and provides evidence on the role of child support in equalizing income between them. Findings show that for divorced couples, fathers are substantially better off than custodial mothers in pre‐tax/transfer income. Taxes and transfers reduce fathers’ relative advantages, and child support equalizes incomes between fathers and mothers. For never‐married couples, fathers have a slight advantage in pre‐tax/transfer income. Fathers’ relative advantage disappears after taxes and transfers; mothers are likely to be better off when measured by post–child support income, even after adjusting for the costs of children. These findings provide contexts relevant to implementation of the new federal child support regulations, finalized in 2016. 对于许多由母亲抚养孩子的家庭而言,子女抚养费成为了这些家庭的重要收入组成部分,但一直以来的顾虑是,很多不具有抚养权的父亲由于工资低,工作不稳定等因素,导致他们难以支付子女抚养费。因此,子女抚养费问题,可能会因为不具有监护权且收入低的父亲将财力资源转移给经济状况良好的由母亲抚养孩子的家庭,从而加剧收入不平等现象。然而,这些论点通常都没有参考由父母双方共同抚养小孩的家庭的相关数据。本文通过对来源于威斯康星州的多种行政管理数据的分析,将夫妇中具有监护权和不具有监护权的各方收入分别划分为:工资、公共支出、税收负担以及福利,并提供了证据以证明儿童抚养费具有平衡双方收入的作用。调查结果显示,对于离婚夫妇而言,大体上父亲在税前/扣除公共性支出前的收入方面,远远好于具有监护权的母亲,但是税收和转移性支出却降低了父亲在这方面的相对优势,从而子女抚养费也使父亲和母亲之间的收入变得相等。对于未婚情侣而言,父亲在税前/扣除公共性支出前的收入方面略有优势,但扣除了税收和转移性支出后,父亲的这种相对优势也不复存在;如果以子女抚养费收入来对双方的经济情况进行衡量的话,即使扣除了抚养孩子的必要支出,母亲的经济状况也很可能好过父亲的经济状况。这些研究结果为有关2016年确定的联邦儿童抚养法规的落实情况提供了背景。 La manutención infantil contribuye a los ingresos de muchas familias de madres con custodia, sin embargo, todavía hay preocupaciones que muchos padres sin custodia tienen trabajos de pocos ingresos e inestables que limitan su habilidad de pagar la manutención infantil. Por esto, la manutención infantil puede exacerbar la desigualdad—que podría transferir recursos de un padre sin custodia de bajos ingresos a una madre con custodia que ya está mejor económicamente. Estos argumentos, sin embargo, se hacen generalmente sin referencia a datos a nivel de la pareja. Este estudio utiliza múltiples fuentes datos administrativos de Wisconsin para construir medidas de ingresos incluyendo las ganancias, transferencias públicas y efectos negativos de impuestos, en parejas selectas de progenitores sin custodia y con custodia y proporciona evidencia del rol de la manutención infantil para equilibrar los ingresos entre ellos. Los hallazgos muestran que, en las parejas de divorciados, los padres están sustancialmente mejor económicamente que las madres con custodia en sus ingresos de transferencia antes de impuestos. Los impuestos y las transferencias recuden las ventajas relativas de los padres y la manutención infantil equilibra los ingresos entre las madres y los padres. Para las parejas que nunca se casaron, los padres tienen una ligera ventaja en sus ingresos de antes de impuestos. La ventaja relativa de los padres desaparece después de impuestos y transferencias; las madres son más propensas a estar mejor económicamente cuando se miden los ingresos de después de la manutención infantil, incluso después de ajustar los costos para los hijos. Estos hallazgos proporcionan contextos relevantes a la implementación de nuevas regulaciones federales para la manutención infantil, finalizadas en 2016.

Suggested Citation

  • Yoonsook Ha & Maria Cancian & Daniel R. Meyer, 2018. "Child Support and Income Inequality," Poverty & Public Policy, John Wiley & Sons, vol. 10(2), pages 147-158, June.
  • Handle: RePEc:wly:povpop:v:10:y:2018:i:2:p:147-158
    DOI: 10.1002/pop4.215
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    References listed on IDEAS

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    1. Maria Cancian & Daniel R. Meyer & Emma Caspar, 2008. "Welfare and child support: Complements, not substitutes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 354-375.
    2. Maria Cancian & Daniel R. Meyer & Eunhee Han, 2011. "Child Support: Responsible Fatherhood and the Quid Pro Quo," The ANNALS of the American Academy of Political and Social Science, , vol. 635(1), pages 140-162, May.
    3. Greg Duncan & Saul Hoffman, 1985. "A reconsideration of the economic consequences of marital dissolution," Demography, Springer;Population Association of America (PAA), vol. 22(4), pages 485-497, November.
    4. Lino, Mark & Kuczynski, Kevin & Rodriguez, Nestor & Schap, TusaRebecca, 2017. "Expenditures on Children by Families, 2015," CNPP Reports 327257, United States Department of Agriculture, Center for Nutrition Policy and Promotion.
    5. Elizabeth Phillips & Irwin Garfinkel, 1993. "Income growth among nonresident fathers: evidence from Wisconsin," Demography, Springer;Population Association of America (PAA), vol. 30(2), pages 227-241, May.
    6. Rich, Lauren M., 2001. "Regular and irregular earnings of unwed fathers: Implications for child support practices," Children and Youth Services Review, Elsevier, vol. 23(4-5), pages 353-376.
    7. Laura Tach & Alicia Eads, 2015. "Trends in the Economic Consequences of Marital and Cohabitation Dissolution in the United States," Demography, Springer;Population Association of America (PAA), vol. 52(2), pages 401-432, April.
    8. Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
    9. D. R. Meyer, "undated". "Supporting children born outside of marriage: Do child support awards keep pace with changes in fathers' incomes?," Institute for Research on Poverty Discussion Papers 1026-93, University of Wisconsin Institute for Research on Poverty.
    10. Maria Cancian & Daniel Meyer & Patricia Brown & Steven Cook, 2014. "Who Gets Custody Now? Dramatic Changes in Children’s Living Arrangements After Divorce," Demography, Springer;Population Association of America (PAA), vol. 51(4), pages 1381-1396, August.
    11. Marilyn Sinkewicz & Irwin Garfinkel, 2009. "Unwed fathers’ ability to pay child support: New estimates accounting for multiple-partner fertility," Demography, Springer;Population Association of America (PAA), vol. 46(2), pages 247-263, May.
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    1. Lenna Nepomnyaschy & Margaret Thomas & Alex Haralampoudis & Huiying Jin, 2022. "Nonresident Fathers and the Economic Precarity of Their Children," The ANNALS of the American Academy of Political and Social Science, , vol. 702(1), pages 78-96, July.

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