Emerging Ideas. How important is formal child support for family economic well-being?

Abstract

Objective

This study investigates the role of child support in family economic well-being and how it has shifted over recent decades, considering differences by family characteristics.

Background

The formal child support program has wide reach and has historically been an important source of income for some. Recent critiques indicate the potential for negative impacts on families and decreasing efficacy.

Methods

Using data from the 1998, 2008, and 2018 Current Population Survey and the linked Child Support Supplement, this study compares proportions of total family income drawn from child support and other sources. Nonpoor and poor custodial families are considered as well as other relevant subgroups.

Results

For poor families, child support increased from 11% to 15% of family income in 1997–2007 then declined to 12% in 2017. For nonpoor families, it declined over the period, from 3.9% to 3.4% to 2.6%. For poor families with orders, almost 23% of income comes from child support; for those receiving payments, the proportion is 33%.

Conclusion

Across most subgroups, child support is no longer increasing in importance and, for some groups, is a declining share of income. Nonetheless, it remains an important source of income for many low-income families.

Implications for Emerging Ideas

This study provides updated evidence about the changing importance of formal child support for families. Understanding the importance of formal support is important in weighing the benefits of income received relative to potential costs of enforcing payments on low-income parents and any disruptions to their relationships with their children it may cause.