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Social and Behavioral Sciences Commons

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Econometrics

University of North Dakota

Theses/Dissertations

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Full-Text Articles in Social and Behavioral Sciences

The Child Support "Tax" : Determining The Effect Of Child Support On The Income Growth Of Noncustodial Parents, Jesse Snook Dec 2015

The Child Support "Tax" : Determining The Effect Of Child Support On The Income Growth Of Noncustodial Parents, Jesse Snook

Theses and Dissertations

This study examines the role of child support in determining income growth. Using an Ordinary Least Squares (OLS) model with state-level fixed effects applied to panel data from the National Study of Families and Households (NSFH), I find that having a legal agreement to pay child support has a significant and negative effect on the income growth of the noncustodial parent. Specifically, after controlling for demographic variables and the respondent’s economic circumstances in the initial time period, the OLS model with state-level fixed effects finds that having a child support obligation is associated with a 17.73 percentage point decrease in …