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Yours, Mine, and Ours: Do Divorce Laws Affect the Intertemporal Behavior of Married Couples?

Resource type
Author/contributor
Title
Yours, Mine, and Ours: Do Divorce Laws Affect the Intertemporal Behavior of Married Couples?
Abstract
This paper examines how divorce laws affect couples' intertemporal choices and well-being. Exploiting panel variation in US laws, I estimate the parameters of a model of household decision-making. Household survey data indicate that the introduction of unilateral divorce in states that imposed an equal division of property is associated with higher household savings and lower female employment, implying a distortion in household assets accumulation and a transfer toward wives whose share in household resources is smaller than the one of their husband. When spouses share consumption equally, separate property or prenuptial agreements can reduce distortions and increase equity. (JEL D13, D14, D91, J12, J16, K36)
Publication
American Economic Review
Volume
105
Issue
8
Pages
2295-2332
Date
2015-08
Citation
Voena, A. (2015). Yours, Mine, and Ours: Do Divorce Laws Affect the Intertemporal Behavior of Married Couples? American Economic Review, 105, 2295–2332.
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