Single mothers often experience more severe economic and social challenges than the two-parent households. The Child Support Enforcement (CSE) enacted in 1975 is a collection of federal and state laws designed to boost an absent parent’s involvement in their child’s life. We extend the previous research by investigating the impact of the CSE policy on the material well-being of single mothers. Utilizing an instrumental variable method, our empirical analysis explicitly takes account of endogeneity of participation in the child support program. Our primary findings suggest that there is a limited positive impact of child support receipt on consumption of market goods and that the single mothers reduce their supply of labor in response to the transfer.
