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

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  • Raquel Fern?ndez
  • Joyce Wong

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.

Suggested Citation

  • Raquel Fern?ndez & Joyce Wong, 2014. "Unilateral Divorce, the Decreasing Gender Gap, and Married Women's Labor Force Participation," American Economic Review, American Economic Association, vol. 104(5), pages 342-347, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:342-47
    Note: DOI: 10.1257/aer.104.5.342
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    References listed on IDEAS

    as
    1. Raquel Fernández & Joyce Cheng Wong, 2014. "Free to Leave? A Welfare Analysis of Divorce Regimes," NBER Working Papers 20251, National Bureau of Economic Research, Inc.
    2. Fernández, Raquel & Wong, Joyce Cheng, 2014. "Free to Leave? A Welfare Analysis of Divorce Regimes," CEPR Discussion Papers 10047, C.E.P.R. Discussion Papers.
    3. Shintaro Yamaguchi & Claudia Ruiz & Maurizio Mazzocco, 2014. "Labor Supply, Wealth Dynamics and Marriage Decisions," 2014 Meeting Papers 210, Society for Economic Dynamics.
    4. Imran Rasul, 2006. "Marriage Markets and Divorce Laws," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(1), pages 30-69, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Doepke, M. & Tertilt, M., 2016. "Families in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1789-1891, Elsevier.
    2. Gonzalez, Felipe & Prem, Mounu & von Dessauer, Cristine, 2023. "Empowerment or Indoctrination? Women Centers Under Dictatorship," SocArXiv 64mf9, Center for Open Science.
    3. Rafael González-Val & Miriam Marcén, 2018. "Unemployment, marriage and divorce," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1495-1508, March.
    4. Rafael González-Val & Miriam Marcén, 2017. "Divorce and the business cycle: a cross-country analysis," Review of Economics of the Household, Springer, vol. 15(3), pages 879-904, September.
    5. Riphahn & Caroline Schwientek, 2015. "What drives the reversal of the gender education gap? Evidence from Germany," Applied Economics, Taylor & Francis Journals, vol. 47(53), pages 5748-5775, November.
    6. Chen, Xiao & Huang, Bihong & Ye, Dezhu, 2019. "The Gender Gap in Peer-to-Peer Lending: Evidence from the People’s Republic of China," ADBI Working Papers 977, Asian Development Bank Institute.
    7. Edlund, Lena & Machado, Cecilia & Sviatschi, Maria, 2015. "Bright Minds, Big Rent: Gentrification and the Rising Returns to Skill," IZA Discussion Papers 9502, Institute of Labor Economics (IZA).
    8. Talamas Marcos, Miguel Ángel, 2023. "Grandmothers and the gender gap in the Mexican labor market," Journal of Development Economics, Elsevier, vol. 162(C).
    9. Michael Fritsch & Michael Wyrwich, 2023. "Entrepreneurship in the Long-Run: Empirical Evidence and Historical Mechanisms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 19(1), pages 1-125, January.
    10. Héctor Bellido & Miriam Marcén, 2021. "Will you marry me? It depends (on the business cycle)," Review of Economics of the Household, Springer, vol. 19(2), pages 551-579, June.
    11. Chen, Xiao & Huang, Bihong & Ye, Dezhu, 2020. "Gender gap in peer-to-peer lending: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 112(C).
    12. Lena Edlund & Cecilia Machado & Maria Micaela Sviatschi, 2015. "Gentrification and the Rising Returns to Skill," NBER Working Papers 21729, National Bureau of Economic Research, Inc.
    13. Rafael González-Val & Miriam Marcén, 2015. "Regional unemployment, marriage, and divorce," Working Papers 2015/38, Institut d'Economia de Barcelona (IEB).
    14. Corradini, Viola & Buccione, Giulia, 2023. "Unilateral divorce rights, domestic violence and women’s agency: Evidence from the Egyptian Khul reform," Journal of Development Economics, Elsevier, vol. 160(C).
    15. Hoehn-Velasco, Lauren & Penglase, Jacob, 2021. "Does unilateral divorce impact women’s labor supply? Evidence from Mexico," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 315-347.
    16. Tobol, Yossef & Bar-El, Ronen & Arbel, Yuval & Azar, Ofer H., 2019. "Gender Differences in the Effect of Employee-Manager Friendships on Salary Dynamics in CPA Firms," IZA Discussion Papers 12707, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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