The impact of child support receipt on household income and labour supply

Fisher, Hayley (2015). The impact of child support receipt on household income and labour supply. LCC Working Paper Series 2015-26, Institute for Social Science Research, The University of Queensland.

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Author Fisher, Hayley
Title The impact of child support receipt on household income and labour supply
School, Department or Centre Institute for Social Science Research
Institution The University of Queensland
Open Access Status File (Publisher version)
Series LCC Working Paper Series
Report Number 2015-26
Publication date 2015-11
Total pages 37
Language eng
Formatted abstract
International evidence suggests that child support schemes provide a small but significant contribution to the household income of lone parents and have modest success in reducing child poverty. There are, however, concerns that receiving child support may discourage labour force participation. I use data from the Household, Income and Labour Dynamics in Australia (HILDA) survey to estimate the effect of receiving child support on government transfer receipt, earned income, hours worked and labour force participation of eligible mothers. OLS estimates of the effect of receiving child support on household behaviour may be biased as a mother's income partly determines the level of support received, and due to the interaction of child support with government transfers. I exploit information about the employment status of a child's non-resident father and find that receiving any child support is associated with a reduction in government transfers, an increase in earned income, and an increase in household income in excess of the amount of child support received. Mothers receiving child support are more likely to be in full time employment, work more hours per week, and are less likely to be out of the labour force.
Keyword Child support
Labour supply
Lone parents
Welfare receipt
Q-Index Status Provisional Code
Institutional Status Non-UQ

 
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Created: Thu, 26 Nov 2015, 08:30:05 EST by Francisco Paco Perales on behalf of Institute for Social Science Research