The effects of welfare and child support policies on union formation

We use data from a new longitudinal survey – the Fragile Families and Child Wellbeing Study – to examine how welfare and child support policies, and local labor market conditions, affect union formation among unmarried parents who have just had a child together. We use multinomial logistic regression to estimate the effects of the policy variables along with economic, cultural/interpersonal, and other factors on whether (relative to being in a cohabiting relationship) parents are not romantically involved, romantically involved living apart, or married to each other about one year after the child's birth. We find that – contrary to some previous research – higher welfare benefits discourage couples from breaking up, while strong child support enforcement reduces the chances that unmarried parents will marry; local unemployment rates do not appear to be strongly associated with union formation decisions after a nonmarital birth.     

Effects of child support and welfare policies on nonmarital teenage childbearing and motherhood

This paper is an assessment of the impact of child support enforcement and welfare policies on nonmarital teenage childbearing and motherhood. We derive four hypotheses about the effects of policies on nonmarital teenage childbearing and motherhood. We propose that teenage motherhood and school enrollment are joint decisions for teenage girls. Based on individual trajectories during ages 12–19, our analysis uses an event history model for nonmarital teenage childbearing and a dynamic model of motherhood that is jointly determined with school enrollment. We find some evidence that child support policies indirectly reduce teen motherhood by increasing the probability of school enrollment, which, in turn, reduces the probability of teen motherhood. This finding suggests that welfare offices may wish to place greater weight on outreach programs that inform more teenagers of the existence of strong child support enforcement measures. Such programs might reduce nonmarital teen motherhood further and thus reduce the need for welfare support and child support enforcement in the long run.

The roles of child support enforcement and welfare in non-marital childbearing

This paper examines the effects of stronger child support enforcement and declines in welfare benefits on changes in non-marital childbearing between 1980 and 1996. Economic theory suggests that stricter child support enforcement will increase the costs of children for unwed fathers, making them less likely to have a child outside marriage. Reductions in welfare benefits also are expected to increase the costs of non-marital childbearing for both mothers and fathers. We examine these hypotheses, using aggregate state-level data and fixed effects regression models to identify the effects of policies on non-marital birth rates. We find that both stricter child support enforcement and declines in welfare benefits deter non-marital births. However, the estimated effects of child support enforcement are more robust and larger than those of welfare. The estimates imply that in the 1980–1996 period, increases in child support enforcement led to a decline in non-marital birth rates in the range of 6% to 9%, whereas decreases in welfare benefits led to a decline in the range of 2% to 4%. Received: 28 June 2000/Accepted: 17 September 2001     

The effect of child support enforcement on child support payments

This paper examines the effect of state child support enforcement legislation on child support received from absent fathers by ever-married women due support in 1978 or 1981. The analysis is based upon data from the 1979 and 1982 March/April Match files of the Current Population Survey, two nationally-representative surveys of the eligible child support population, combined with a data set assembled by the authors on child support enforcement techniques available in each state. Based upon probit estimates and OLS estimates corrected for sample selection bias, we find that expedited processes and liens (against real and personal property), as well as wage withholding laws in effect for at least three years, increased the amount of child support received in 1981. In general, enforcement is more effective at increasing the amount received than the probability of receiving something, and is more effective for Blacks than for nonBlacks.     

The effects of the child support provisions of the Family Support Act of 1988 on child well-being

The provisions for child support reform in the Family Support Act of 1988 are likely to have a large impact upon the well-being of children eligible for child support, a group expected to include half of the children in the country. The reform is expected to increase child support payments and thereby reduce the economic insecurity and poverty of children who live apart from a parent. It is also expected to lead to increased contact between noncustodial parents and their children, which may also enhance well-being. This paper reviews the child support system in the United States, summarizes the empirical research that has been carried out on children from disrupted families, analyzes the impact that the Family Support Act may have on child well-being, and discusses the key variables that should be measured as well as the most promising sources of data to evaluate child support reform.Any opinions expressed in this paper are those of the authors and do not reflect the views of the sponsoring institutions.     

The effects of the welfare system on marital dissolution

The economic theory of marriage predicts that the partners expectations of greater financial resources outside of marriage should increase the probability of marital dissolution. One potential implication is that marriages should be less stable in states with higher AFDC benefits. I study this implication empirically using data on separations and divorces among marriages involving women in the National Longitudinal Survey of Youth. I find no supporting evidence that higher welfare benefits lead to increased rates of marital dissolution among married women with children.I thank Mary Ellen Benedict, Madeline Zavodny, and two anonymous referees for helpful comments, and Saul Hoffman for providing his data on AFDC benefits. Responsible editor: T. Paul Schultz.     

The potential of child care tax credits to reduce poverty and welfare recipiency

As more and more mothers of young children enter the work force, interest in government financing of child care grows. The chief government subsidy for child care is the child care credit in the federal Internal Revenue Code. This is a nonrefundable credit and therefore provides benefits only to those with incomes high enough to require them to pay income tax. Yet of the $ 5.5 billion spent by the federal government on child care in 1986, this program accounted for $ 3.5 billion.This paper simulates the effects of expanding the child care tax credit by (1) doubling the reimbursement rates of the current credit; (2) making the credit refundable; and (3) both making the credit refundable and increasing its value for all families with income below $ 32,000.Results suggest that these changes will have modest effects on the income and earnings of mothers, and on the poverty gap and welfare recipiency. Costs, however, differ substantially. Doubling the value of the credit is far more expensive than either making the credit refundable or making it both refundable and more generous at the bottom of the income distribution. Making the credit refundable may cost taxpayers very little by leading to increases in hours worked and concomitant reductions in welfare payments.     

The impact of child support on cognitive outcomes of young children

We use the National Longitudinal Survey of Youth-Child data to address three questions. First, does the receipt of child support have beneficial effects for children with absent fathers apart from increasing income? Second, do the effects of child support differ when child-support awards and payments are made cooperatively as opposed to being court ordered? Third, are any positive effects of child support solely a product of unmeasured differences among fathers and families? Controlling for the socioeconomic characteristics of the child and family, we find some evidence that receipt of child support has a positive impact on children’s cognitive test scores over and above its contribution to total income. However, the effects vary by test, by race, and by reason for Father’s absence. Our results also indicate that the distinction between cooperative and noncooperative awards is important. Finally, our instrumental variables estimates show that the effects of child support persist after we control for unobserved characteristics of fathers and families.     

The impact of changes in child support policy

This paper measures the impact of child support reforms on payments to divorced mothers and welfare participation rates among them. A Stackelberg model of divorced parents’ behavior is calibrated to data from Wisconsin, where child support payments increased from $2,175.35 to $3,431.77 and welfare participation rates decreased from 33.5% to 9% between 1981 and 1992. Results show that new guidelines accounted for 24.4% and improved enforcement for 74% of the increase in payments. Higher payments accounted for a 3.9-percentage-point decline, decreasing welfare benefits an 8.4-percentage-point decline, and the two combined a 15-percentage-point decline in the welfare participation rate.      

Explaining trends in child support: Economic,demographic, and policy effects

We use data from the Panel Study of Income Dynamics to examine trends in the receipt of child support (and the determinants of trends) between 1968 and 1997. The findings suggest that political, demographic, and economic forces all exerted downward pressure on child-support payments during this 30-year period, with inflation, the shift to unilateral divorce, and declines in fertility and men's earnings being more important during the earlier years and decreases in men's earnings being more important during the later years. These negative forces were offset by the passage of new child-support legislation in the 1980s and 1990s, including numeric guidelines, universal withholding, and genetic testing.     

Child support and welfare dynamics: Evidence from Wisconsin

This paper provides estimates of the effect of child support on exiting and reentering welfare for a sample of divorced women in Wisconsin. Modest amounts of child support do not have large effects on exiting welfare in this sample. The percentage of women who return to welfare is higher than has been reported previously. Receiving child support significantly decreases the likelihood of returning to welfare.     

Migration and the latino family: The union formation behavior of Puerto Rican women

This study examines the transition to first union among Puerto Rican women. I argue that understanding the behavior of mainland Puerto Ricans requires attention to family patterns in Puerto Rico and to the dynamics of migration between Puerto Rico and the United States. The study therefore is based on pooled data from comparable surveys undertaken in the two settings. These data allow for event history analyses that compare the union formation behavior of migrants with that of nonmigrants, and consider the role of migration in producing the observed union patterns. Multivariate models show that migrants are more likely than nonmigrants to form unions early and to enter informal unions. Additional analyses show that selective migration plays a role in producing this pattern. Overall the findings demonstrate the importance of using data from both origin and destination locales for understanding the behavior of migrant groups.     

The effects of child health on marital status and family structure

The purpose of this paper is to provide evidence on the effect of child health on marital stability and family structure in an economic framework. We use the 1988 National Health Interview Survey's Child Health Supplement, with a sample of about 9,000 families, to test whether having an unhealthy child decreases the mother's chance of being married and whether it increases her chance of living in an extended family. Using two different measures of child health, we find that having an unhealthy child decreases the mother's likelihood of being married. Our results imply that children in poor health are more likely to face obstacles beyond their illness because they also are more likely to suffer the consequences of poverty and the poor schooling outcomes that result from being raised in a female-headed household. The only mitigating factor is that unhealthy white children are more likely than their healthy counterparts to be living in an extended family.     

The effects of maternal employment on child injuries and infectious disease

This article presents estimates of effects of maternal paid work and nonmaternal child care on injuries and infectious disease for children aged 12 to 36 months. Mother-child fixed-effects estimates are obtained by using data from the NICHD Study of Early Child Care. Estimates indicate that maternal employment itself has no statistically significant adverse effects on the incidence of infectious disease and injury. However greater time spent by children in center-based care is associated with increased rates of respiratory problems for children aged 12 to 36 months and increased rates of ear infections for children aged 12 to 24 months.     

Child support and welfare dependence: A multinomial logit analysis

The relation between welfare dependency and receipt of child support is investigated with data from a special supplement to the Current Population Survey. The impact of receiving child support on a family's welfare status is estimated and the types of families for which child support enforcement policies may have the greatest impact are identified. Overall, the results indicate that receipt of child support has a modest impact on reducing welfare dependency. However, the results also indicate that if child support obligations can be established and enforced shortly after a marital dissolution takes place, the likelihood that a family will later become a welfare recipient is significantly reduced.     

The effects of kin on child mortality in rural gambia

We analyzed data that were collected continuously between 1950 and 1974 from a rural area of the Gambia to determine the effects of kin on child mortality. Multilevel event-history models were used to demonstrate that having a living mother, maternal grandmother, or elder sisters had a significant positive effect on the survival probabilities of children, whereas having a living father, paternal grandmother, grandfather, or elder brothers had no effect. The mother's remarriage to a new husband had a detrimental effect on child survival, but there was little difference in the mortality rates of children who were born to monogamous or polygynous fathers. The implications of these results for understanding the evolution of human life-history are discussed.     

The effects of early maternal employment on child cognitive development

We investigated the effects of early maternal employment on children's cognitive outcomes, using data from the National Longitudinal Survey of Youth on 1,872 children who can be followed from birth to age 7 or 8. We found some persistent adverse effects of first-year maternal employment and some positive effects of second- and third-year maternal employment on cognitive outcomes for non-Hispanic white children, but not for African American or Hispanic children. These effects are present even after we controlled for a range of individual and family characteristics that affect child development, including those that are likely to be correlated with maternal employment, such as breast-feeding and the use of nonmaternal child care. Controlling for family fixed effects reduces the effects of early maternal employment on some cognitive outcomes but not on others.     

The welfare effects of labour force growth with internationally mobile capital

The effects of labour supply growth on the welfare of preexisting destination and non-emigrating source populations are analysed. This growth occurs in open economies where free trade in capital goods is possible. Traditional small economy arguments for population growth rely on the existence of priced though internationally immobile factors. When all factors are freely-traded and population grows naturally the case rests either on market distortions or common property within families. In an integrated world labour growth can lead to capital flight and increasing wage differentials. With international interactions, immigration increases preexisting welfare in destination countries but generally (not always) reduces it for non-emigrants in source countries. Immigration provides efficiency gains to all originally resident in source countries. Natural population growth anywhere promotes efficiency gains everywhere.     

The spillover effects of population aging, international capital flows, and welfare

This paper considers how a rise in old-age survival probability in a country with a higher old-age dependency ratio (the home country) influences the welfare of a country with a lower old-age dependency ratio (the foreign country). In a dynamically efficient steady-state equilibrium, we show that the old-age survival probability in the home country, when relatively low (high), has a positive (negative) effect on the welfare of the foreign country. We also show that the reform of a social security program in the home country may improve not only domestic welfare but also the welfare of the foreign country.     

The determinants of paternity establishment and child support award rates among unmarried women

This paper examines the relationships between several child support policies, paternity establishment, and child support award rates among never-married women. We use several state policies and practices in place throughout the 1980s to examine their effectiveness at increasing paternity establishment rates and at increasing the proportion of unmarried women who have child support awards. We also examine the direct relationship between paternity establishment rates and child support award rates. We estimate these relationships using a variety of specifications, using cross-state variation in child support enforcement to identify the effects of policies. To date, child support remains largely the province of state family law, and, although policies have changed dramatically in response to two decades of federal mandates, state laws and practices still vary.