Getting the Order Right: Child Support Guidelines and the Cost of Raising Children

This article argues that the United States Department of Agriculture’s (USDA) estimates of parental expenditures on children are an appropriate economic foundation for state child support guidelines. The USDA’s estimates are consistent with the public policy purposes of state guidelines and may improve the extent to which they accomplish federal intent. The article examines the role of valid and reliable child cost estimates in advancing the policy objectives for child support, summarizes the theoretical and empirical challenges of estimating those costs, suggests the limitations of the most widely used estimation methods in relation to the policy purposes described earlier, and evaluates the USDA’s method in relation to those same purposes. The evidence suggests that guidelines based on the USDA’s estimates are more likely than the most commonly used estimates to yield adequate child support orders and to allocate economic responsibility for children appropriately among the custodial parent, the noncustodial parent, and the state.     

Trade-offs implicit in child-support guidelines

Recent U.S. federal legislation required states to establish mandatory judicial guidelines for the setting of child-support awards. An equivalence-based approach is used to compare three formulae (two in use, one proposed) to three theoretical benchmarks, to clarify unavoidable trade-offs in the choice of a guideline.

1 Generally, the formulae in use leave children worse off economically than would the benchmark formulae.

Since the economic well-being of children cannot be separated from that of their custodial parent, that which most privileges children's welfare will usually privilege the custodial parent over the absent parent, and what appears more fair between the two adults may be less favorable to the children. Another possible trade-off is between children's welfare and work incentives: The guidelines that prescribe larger awards are those with higher implied marginal tax rates. Despite their work disincentive effects, the formulae with higher marginal tax rates are more favorable to children's economic interests.     

The effect of routine income withholding of child support collections

Recent federal legislation requires states to make substantial improvements in paternity establishment, enact numeric child support standards for determining child support awards, update those awards at least every three years, and adopt routine income withholding of all child support obligations. Data gathered for the purpose of evaluating the Wisconsin Child Support Assurance System make it possible to examine the effects of routine income withholding on the size and regularity of child support payments. The data consisted of court records of child support cases that entered the court system in 20 Wisconsin counties between 1980 and 1986. Our estimates suggest routine income withholding increases child support payments by between 11 and 30 percent.     

The impact of child support enforcement policy on nonmarital childbearing

The interaction of welfare and child support regulations has created a situation in which child support policy's incentives that discourage unwed fatherhood tend to be stronger than its incentives that encourage unwed motherhood. This suggests that more stringent child support enforcement creates incentives that reduce the likelihood of nonmarital childbearing, particularly among women with a significant chance of needing public assistance in the event of a nonmarital birth and their male partners. We investigate this hypothesis with a sample of women from the Panel Study of Income Dynamics, to which we add information on state child support enforcement. We examine childbearing behavior between the ages of 15 and 44 before marriage and during periods of non‐marriage following divorce or widowhood. The estimates indicate that women living in states with more effective child support enforcement are less likely to bear children when unmarried, especially if they are young, never‐married, or black. The findings suggest that improved child support enforcement may be a potent intervention for reducing nonmarital childbearing. © 2006 by the Association for Public Policy Analysis and Management.     

The TANF/SSI connection

Interactions and overlap of social assistance programs across clients interest policymakers because such interactions affect both the clients' well-being and the programs' efficiency. This article investigates the connections between Supplemental Security Income (SSI) and Temporary Assistance for Needy Families (TANF) and TANF's predecessor, the Aid to Families with Dependent Children (AFDC) program. Connections between receipt of TANF and SSI are widely discussed in both disability policy and poverty research literatures because many families receiving TANF report disabilities. For both states and the individuals involved, it is generally financially advantageous for adults and children with disabilities to transfer from TANF to SSI. States gain because the federal government pays for the SSI benefit, and states can then use the TANF savings for other purposes. The families gain because the SSI benefits they acquire are greater than the TANF benefits they lose. The payoff to states from transferring welfare recipients to SSI was substantially increased when Congress replaced AFDC with TANF in 1996. States retained less than half of any savings achieved through such transfers under AFDC, but they retain all of the savings under TANF. Also, the work participation requirements under TANF have obligated states to address the work support needs of adults with disabilities who remain in TANF, and states can avoid these costs if adults have disabilities that satisfy SSI eligibility requirements. The incentive for TANF recipients to apply for SSI has increased over time as inflation has caused real TANF benefits to fall relative to payments received by SSI recipients. Trends in the financial incentives for transfer to SSI have not been studied in detail, and reliable general data on the extent of the interaction between TANF and SSI are scarce. In addition, some estimates of the prevalence of TANF receipt among SSI awardees are flawed because they fail to include adults receiving benefits in TANF-related Separate State Programs (SSPs). SSPs are assistance programs that are administered by TANF agencies but are paid for wholly from state funds. When the programs are conducted in a manner consistent with federal regulations, the money states spend on SSPs counts toward federal maintenance-of-effort (MOE) requirements, under which states must sustain a certain level of contribution to the costs of TANF and approved related activities. SSPs are used for a variety of purposes, including support of families who are in the process of applying for SSI. Until very recently, families receiving cash benefits through SSPs were not subject to TANF's work participation requirements. This article contributes to analysis of the interaction between TANF and SSI by evaluating the financial consequences of TANF-to-SSI transfer and developing new estimates of both the prevalence of receipt of SSI benefits among families receiving cash assistance from TANF and the proportion of new SSI awards that go to adults and children residing in families receiving TANF or TANF-related benefits in SSPs. Using data from the Urban Institute's Welfare Rules Database, we find that by 2003 an SSI award for a child in a three-person family dependent on TANF increased family income by 103.5 percent on average across states; an award to the adult in such a family increased income by 115.4 percent. The gain from both child and adult transfers increased by about 6 percent between 1996 (the eve of the welfare reform that produced TANF) and 2003. Using data from the Department of Health and Human Services' TANF/SSP Recipient Family Characteristics Survey, we estimate that 16 percent of families receiving TANF/SSP support in federal fiscal year 2003 included an adult or child SSI recipient. This proportion has increased slightly since fiscal year 2000. The Social Security Administration's current procedures for tabulating characteristics of new SSI awardees do not recognize SSP receipt as TANF We use differences in reported TANF-to-SSI flows between states with and without Separate State Programs to estimate the understatement of the prevalence of TANF-related SSI awards in states with SSPs. The results indicate that the absolute number of awards to AFDC (and subsequently) TANF/SSP recipients has declined by 42 percent for children and 25 percent for adults since the early 1990s. This result is a product of the decline in welfare caseloads. However, the monthly incidence of such awards has gone up-from less than 1 per 1,000 child recipients in calendar years 1991-1993 to 1.3 per 1,000 in 2001-2003 and, for adult recipients, from 1.6 per 1,000 in 1991-1993 to 4 per 1,000 in 2001-2003. From these results we conclude that a significant proportion of each year's SSI awards to disabled nonelderly people go to TANF/SSP recipients, and many families that receive TANF/SSP support include adults, children, or both who receive SSI. Given the Social Security Administration's efforts to improve eligibility assessment for applicants, to ensure timely access to SSI benefits for those who qualify, and to improve prospects for eventual employment of the disabled, there is definitely a basis for working with TANF authorities both nationally and locally on service coordination and on smoothing the process of SSI eligibility assessment. The Deficit Reduction Act of 2005 reauthorized TANF through fiscal year 2010, but with some rules changes that are important in light of the analysis presented in this article. The new law substantially increases effective federal requirements for work participation by adult TANF recipients and mandates that adults in Separate State Programs be included in participation requirements beginning in fiscal year 2007. Thus SSPs will no longer provide a means for exempting from work requirements families that are in the process of applying for SSI, and the increased emphasis on work participation could result in more SSI applications from adult TANF recipients.     

Effective child support policy for low‐income families: evidence from street level research

Since 1984, policymakers have increasingly turned their attention to reforming the child support system. Despite this attention, the child support system has often failed to increase the economic security of single‐parent families. This article analyzes findings from recent qualitative studies to explain why the child support system breaks down for so many low‐income families. This research suggests that parents often prefer informal arrangements of support and do not comply with child support regulations they perceive to be unfair, counterproductive, or punitive. It also suggests that there is a mismatch between the premises and goals of child support policy and what low‐income parents desire from the system. This mismatch impedes low‐income parents' willingness and ability to comply with existing policy, even when they wish to do so, and will make reform difficult. © 2001 by the Association for Public Policy Analysis and Management.     

Improving child support enforcement for children receiving SSI

Less than half of all children who receive Supplemental Security Income (SSI) benefits and live in a single-parent home receive child support services. Although filing for child support is a condition of eligibility for income assistance programs such as Temporary Assistance for Needy Families (TANF), it is not a condition of eligibility for SSI benefits. Requiring single custodial parents applying for SSI on behalf of their children to pursue child support payments might result in more children on SSI receiving child support, and since the Social Security Administration (SSA) excludes one-third of child support when determining benefit amounts, increased receipt of child support would enhance the financial well-being of SSI children. Improving access to data on child support would enhance the integrity of the SSI program by reducing overpayments to children receiving child support. This article looks at the child support provisions in SSI and other means-tested programs and discusses policy options for improving receipt of child support and access to related data. Requiring cooperation with child support enforcement agencies would be consistent with the philosophy that the SSI program should serve as a program of last resort. Whenever possible, both parents should take primary responsibility for their children. While such a requirement has the potential to improve the financial status of children receiving SSI, factors such as their low-income status and their involvement with the TANF program raise questions about how much those children will actually benefit from such a requirement. Even if many additional children do not receive child support, the requirement demonstrates SSA's dedication to the stewardship of the SSI program. However, if custodial parents fail to comply with the requirement, children may be worse off as a result of the requirement. SSA should carefully pursue a requirement to induce cooperation while protecting children to the greatest extent possible. Improving access to child support data would enhance the integrity of the SSI program by reducing overpayments to children receiving child support. Given the reality of limited administrative resources as well as the apparent difficulties of gaining access to the needed child support data, SSA must decide which data matches to pursue and which requirements enhance the program enough to justify the additional resources. Although the options discussed in this article may be chosen independently, there are important interactions to consider. For example, although a requirement to pursue support might result in more children receiving child support, SSA would still rely on parents to report that income unless it was able to gain better access to child support data. Implementing the option to require cooperation with child support enforcement (CSE) agencies could improve verification of income from child support if field offices developed better communication with local CSE offices. However, by itself, it would not have as great an effect on overpayments as would having direct access to child support data. In a 1999 report, the General Accounting Office acknowledged that the potential benefit reductions would be offset by the cost for SSA to administer a child support cooperation requirement and by the costs to the CSE programs to provide services. The report suggested that the goals of promoting parental responsibility and increasing the income of children receiving SSI should be pursued despite the costs. Requiring cooperation may increase administrative costs by $6 million over 5 years and may result in program savings. Gaining access to data may be more expensive and may not prevent overpayments to the same extent as other data-matching workloads on which SSA has placed a priority. SSA should continue to work with federal child support enforcement and with individual states to develop a cost-effective way to identify child support income.     

Are Parental Welfare Work Requirements Good for Disadvantaged Children? Evidence From Age‐of‐Youngest‐Child Exemptions

This paper assesses the impact of welfare reform's parental work requirements on low‐income children's cognitive and social‐emotional development. The identification strategy exploits an important feature of the work requirement rules—namely, age‐of‐youngest‐child exemptions—as a source of quasi‐experimental variation in first‐year maternal employment. The 1996 welfare reform law empowered states to exempt adult recipients from the work requirements until the youngest child reaches a certain age. This led to substantial variation in the amount of time that mothers can remain home with a newborn child. I use this variation to estimate the impact of work‐requirement‐induced increases in maternal employment. Using a sample of infants from the Birth cohort of the Early Childhood Longitudinal Study, the reduced form and instrumental variables estimates reveal sizable negative effects of maternal employment. An auxiliary analysis of mechanisms finds that working mothers experience an increase in depressive symptoms, and are less likely to breastfeed and read to their children. In addition, such children are exposed to nonparental child care arrangements at a younger age, and they spend more time in these settings throughout the first year of life.     

Welfare and child support: Complements,not substitutes

In most states, child support paid on behalf of Temporary Assistance for Needy Families (TANF) participants is used to offset TANF and child support administrative expenditures; this policy primarily benefits taxpayers. In contrast, Wisconsin allowed most custodial parents to keep all support paid on their behalf. This policy, which treats welfare and child support as complements, was evaluated through an experimental design. This paper reports the key results of the experimental evaluation, using state administrative data to examine the effects on child support outcomes and governmental cost. We find that when custodial mothers keep all child support paid on their behalf, paternity establishment occurs more quickly, noncustodial fathers are more likely to pay support, and custodial families receive more support. These outcomes are achieved at no significant governmental cost. © 2008 by the Association for Public Policy Analysis and Management.     

Reducing women's poverty by shifting social security benefits from retired couples to widows

This article examines proposals to transfer Social Security benefits from married couples to surviving widows in terms of effects on poverty rates, trust fund expenditures, and Supplemental Security Income (SSI) expenditures. Because widows are much more likely to be living in poverty than older married women, it makes sense to consider Social Security benefits in a lifetime framework and transfer some benefits from the time both the husband and wife are alive to the time when there is only one survivor, usually the wife. Because of expected life span and age differences of marital partners, a $1 reduction of the couple's benefit can finance a $1.45 increase in the widow's benefit. The 1990 Survey of Income and Program Participation (SIPP) matched to the Social Security Administration's benefit records are the basis for the estimates.     

Child Support and the Affordable Care Act's Medicaid Expansions

A quickly developing literature has shown that the Affordable Care Act's (ACA) Medicaid expansions have improved health insurance coverage, health, and financial well‐being among low‐income adults without dependent children. This population includes noncustodial parents. With substantial overlap in the population that is typically obligated to pay child support and the population that has strongly benefited from the expansions, there may be potential implications for child support enforcement. In this paper, I examine the effect of public health insurance eligibility to low‐income adults on child support outcomes. I find that the ACA Medicaid expansions increased child support distributed to custodial families as arrears by 8.5 percent. Evidence also suggests current support distributions increased by about 2 percent. There were no significant effects on paying toward a child support order. Among unmarried mothers, the likelihood of child support receipt increased by 8 percent. These results imply that access to public health insurance can increase the ability of noncustodial parents to pay child support.     

The long‐term effects on children and adolescents of a policy providing work supports for low‐income parents

New Hope, an employment‐based poverty‐reduction intervention for adults evaluated in a random‐assignment experimental design, had positive impacts on children's achievement and social behavior two and five years after random assignment. The question addressed in this paper was the following: Did the positive effects of New Hope on younger children diminish or even reverse when children reached the challenges of adolescence (eight years after random assignment)? Small positive impacts on school progress, school motivation, positive social behavior, child well‐being, and parent control endured, but impacts on school achievement and problem behavior were no longer evident. The most likely reasons for lasting impacts were that New Hope families were slightly less likely to be poor, and children had spent more time in center‐based child care and structured activities. New Hope represents a model policy that could produce modest improvements in the lives of low‐income adults and children. © 2011 by the Association for Public Policy Analysis and Management.     

Childhood bads,parenting goods,and the right to procreate

Abstract

Harry Brighouse and Adam Swift, together with many other philosophers, think that adults’ interests in raising a child can give them a moral right to parent when they will be adequate parents. We consider whether the same interest could give such adults a moral right to procreate, as a means of acquiring a child to raise. We argue that the interest in parenting cannot support a right to procreate, because the features of childhood that make parenting uniquely valuable for adults are bad for children. Adults may have a right to procreate, but they do not have that right due to their interest in a parent–child relationship.     

The Active Child Citizen: Lessons from Canadian Policy and the Children's Movement

The United Nations Convention on the Rights of the Child has advanced a model of active citizenry for children, which is difficult to reconcile with the still dominant Western notions of childhood that fetishize innocence and attribute passivity and incompetence to children. This article explores the manner in which state policy, Canadian courts, and children's politics in Canada have responded to the imaginary of the active child citizen. The Canadian government has provided limited political space to young people and has narrowly construed children's participation rights as limited to family law and juvenile justice. The reluctance of adult decision-makers to open up policy-making to the contributions of children has been further hindered by the current anti-democratic cast of neo-liberal governance. This article examines how quasi-judicial tribunals and the Canadian courts have invoked the Convention in their dealings with child asylum seekers, only to construct childhood participation and childhood protection as mutually exclusive. The article concludes with a brief exploration of the alternative model of children's citizenship revealed by the children's movement organization, Free the Children. In contrast to the relative failure of adult decision-makers to implement the participation rights of children, the contemporary children's movement advances a view of children as empowered, knowledgeable, compassionate and global citizens, who are nonetheless, like other marginalized groups, in need of special, group-differentiated protections.     

Interstate migration,income and public school expenditures: An update of an experiment

This article re-examines the relative importance of per capita income and net out-migration (Weisbrod's welfare-maximization hypothesis) as determinants of expenditures for public primary and secondary education. A repetition of Weisbrod's experiment shows that the existence of a high correlation between per capita income and migration in the 1950s would have made it difficult to distinguish between their relative importance. An update of the experiment yields results contrary to the hypothesis that communities (states) are welfare maximizers. They support the contention that per capita income is a primary determinate of educational expenditures.     

Unchanging child support orders in the face of unstable earnings

The underlying theory behind child support guidelines implies that child support orders should change when the incomes of noncustodial parents change. This paper documents changes in noncustodial fathers' earnings over a five‐year period and examines the relationship between the changes in earnings and modifications in child support orders. Using detailed longitudinal administrative data from Wisconsin, the authors examine the history of orders and earnings for fathers in couples who had their first child support ordered in 2000. A substantial proportion of fathers experience large changes in earnings, but relatively few of the associated child support orders are modified. Using discrete‐time multinomial event history models that consider time‐varying variables and control for censored observations, we find some evidence of changes in earnings being associated with changes in orders, all else equal, but the relationship is relatively weak and order changes are not proportional to earnings changes. The findings highlight the challenges and importance of developing policies that result in child support orders being more responsive to changes in fathers' incomes. © 2010 by the Association for Public Policy Analysis and Management.     

Terrorized economies

In this paper we estimate the macroeconomic consequences of terrorism using panel data for 147 countries for the period 1968–2002. The results reveal that the potential gains to a country from reducing terrorism are quite large, although the specific estimates depend on a country's population, base level of output, and investment. We present estimates of the impact of terrorism on GDP, GDP growth, investment, consumer spending, and tourism. These estimates of the marginal impact of terrorism provide a threshold against which a country's expenditures on anti-terrorism can be weighed.     

Why Assessing Estimative Accuracy is Feasible and Desirable

The US Intelligence Community (IC) has been heavily criticized for making inaccurate estimates. Many scholars and officials believe that these criticisms reflect inappropriate generalizations from a handful of cases, thus producing undue cynicism about the IC's capabilities. Yet there is currently no way to evaluate this claim, because the IC does not systematically assess the accuracy of its estimates. Many scholars and practitioners justify this state of affairs by claiming that assessing estimative accuracy would be impossible, unwise, or both. This article shows how those arguments are generally unfounded. Assessing estimative accuracy is feasible and desirable. This would not require altering existing tradecraft and it would address several political and institutional problems that the IC faces today.     

Government support of technical progress: Lessons from history

In the past, the U.S. government has been involved in various programs to support technical progress. The record of such programs in seven industries offers important guidelines. The economist's usual presumption that government support for such activities should be concentrated on those cases in which there is palpable market failure proves much too simple. Programs that stand the best chance of success are those in which the government itself is a dominant customer for the product concerned, those that do not require the government to determine what the commercial market wants, and those that do not directly threaten the relative position of competing firms in the industry. Some of the most successful programs have been positioned between basic research on the one hand and commercial application on the other.     

Changes in living arrangements during the late 1990s: Do welfare policies matter?

Using data from the 1997 and 1999 National Surveys of America's Families, the authors examine the consequences of state welfare policies and practices on the living arrangements of low‐income families with children. Results from a multivariate difference‐in‐difference‐in‐differences model suggest that more effective collection of child support and family cap policies are correlated with declines in single parenting and increases in dual parenting. Other policies such as sanctions and special restrictions that apply to two‐parent families have no clear, consistent association with living arrangements. © 2004 by the Association for Public Policy Analysis and Management.