| Abstract: | ABSTRACT: Among the policy changes proposed in the United States for determining equitable child support orders there is the proportionate order, which consists in setting orders as a percentage of the non-custodial parent's income and wage withholding which involves the improvement of the procedure of collection of child support payments with the use of automatic withholding. In this paper we use US data to compare proportionate and fixed child support awards and the interaction of these order types with wage withholding. We conduct an empirical investigation of the effects of these systems on divorced fathers’child support transfer. Our empirical results show that wage withholding tends to alleviate the problem of non-compliance, while proportionate orders do not. |
