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American Economic Review Vol. 104 No. 5 2014

Unilateral Divorce, the Decreasing Gender Gap, and Married Women's Labor Force Participation

Raquel Fernández1; Joyce Wong2

1 NYU, 19 W. 4th St, New York, NY 10012 (e-mail: ) · 2 IMF, 1900 Pennsylvania Avenue, Washington, DC 20431 (e-mail: )

Abstract

Married women's labor force participation (LFP) increased dramatically in the United States between the 1940 and 1960 cohort. The two cohorts lived under different divorce regimes (unilateral divorce rather than mutual consent). The 1960 cohort also had a lower gender wage gap. We use a quantitative dynamic life-cycle model of endogenous marital status, calibrated to key statistics for the 1940 cohort, to study the effects of these two changes. We find that both drivers combined are able to account for over 50 percent of the increase in married women's LFP and also generate large movements in marriage and divorce rates.

DOI
10.1257/aer.104.5.342
Volume
104
Issue
5
Pages
342-347
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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