How Will PFS Affect Children?
One might assume that a program that generates an increase in formal child support payments would have an unambiguously positive impact on children. After all, children are clearly better off when they have access to greater financial resources. Moreover, studies have shown that child support — as opposed to other income sources — is associated with other positive outcomes such as childrens’ educational attainment.(1) However, despite this evidence there are several reasons to remain cautious. First, as long as the custodial parent remains on welfare, she and the children will not receive more than $50 per month in child support. Thus, if payments increase but are still not high enough to close the custodial parent’s AFDC case, the primary beneficiary will be the government. In fact, to the extent that PFS results in a substitution of formal for informal child support, the custodial parent and children may experience a net loss in income. Of course, when custodial parents do go to wo
