Parental responses to child support obligations: Evidence from administrative data

We study parental responses to child support obligations using rich administrative data from Denmark and variation in the child support formula. We estimate that a 1000 DKK ($160) increase in a father's obligation is associated with a 273 DKK ($45) increase in his payment. A higher obligation reduces father-child co-residence, pointing to substitution between financial and non-pecuniary investments. Further, obligations increase post-separation fertility among remarried fathers, but have no impacts on maternal fertility or either parent's labor supply. Our findings suggest that government efforts to increase child investments through mandates on parents can be complicated by their behavioral responses to them.