Long-run economic consequences of child support enforcement for the middle class

Abstract

The purpose of this research is to examine the economic impact of child support transfers for middle-income custodial and noncustodial parent over a 15-year period. We have a substantial amount of research on low-income families, but little research about middle-income families. This research is based on computer simulations using income and expenditure data from the Consumer Expenditure Survey (CES) tables prepared by the Bureau of Labor Statistics. The results of the simulations challenge the majority of research that proposes that women suffer far more than men after family dissolution. Instead, we conclude that it is the noncustodial parent, usually the father, who suffers the most. In every case and for every income, according to our analyses, the payer of child support is never able to cover household expenditures if paying child support at guideline levels. By reducing the standard of living to the next lowest income category, in some cases to a level below the custodial parent’s, the parent owing child support is able to make child support payments and cover consumer expenditures. We use exchange and choice theories to analyze the economic alternatives in making a decision to divorce and consequently propose that public support for strict child support enforcement may encourage middle-income women to seek divorce. Micro-level decisions, we argue, have macro-level economic and social consequences for the middle-income parents.