The Effect of Divorce on Intergenerational Transfers: New Evidence

This paper draws on new data on intergenerational transfers of time and money that were collected in the Panel Study of Income Dynamics. We use these data to examine the effects of divorce on these transfers. We find that the timing of divorce is critical. Fathers and mothers involved in late divorces have similar levels of transfers with their adult children, while divorce during a child’s childhood years increases transfers with mothers and sharply lowers them with fathers. Somewhat surprisingly, we find no evidence that divorced fathers who paid child support are more likely to be involved in intergenerational transfers than those who did not pay child support.