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Does Custody Law Affect Family Behavior In and Out of Marriage?

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Author Info

  • Böheim, René

    ()
    (University of Linz)

  • Francesconi, Marco

    ()
    (University of Essex)

  • Halla, Martin

    ()
    (University of Linz)

Abstract

We examine the effect of joint custody on marriage, divorce, fertility and female employment in Austria using individual-level administrative data, covering the entire population. We also use unique data obtained from court records to analyze the effect on post-divorce outcomes. Our estimates show that joint custody significantly reduces divorce and female employment rates, significantly increases marriage and marital birth rates, and leads to a substantial increase in the total money transfer received by mothers after divorce. We interpret these results as evidence against Becker-Coase bargains and in support of a mechanism driven by a resource redistribution that favors men giving them greater incentives to invest in marriage specific capital.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7064.

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Length: 37 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7064

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Keywords: divorce; fertility; bargaining; intrahousehold allocations; Austria;

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References

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  1. Sonia Oreffice, 2007. "Did the legalization of abortion increase women’s household bargaining power? Evidence from labor supply," Review of Economics of the Household, Springer, vol. 5(2), pages 181-207, June.
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  3. Jonathan Gruber, 2004. "Is Making Divorce Easier Bad for Children? The Long-Run Implications of Unilateral Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 799-834, October.
  4. Nunley, John M. & Seals Jr., Richard Alan, 2011. "Child-custody reform, marital investment in children, and the labor supply of married mothers," Labour Economics, Elsevier, vol. 18(1), pages 14-24, January.
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  8. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
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  15. Jeanne Lafortune & Pierre-Andre Chiappori & Murat Iyigun & Yoram Weiss, 2012. "Changing the Rules Midway: The Impact of Granting Alimony Rights on Existing and Newly-Formed Partnerships," Documentos de Trabajo 424, Instituto de Economia. Pontificia Universidad Católica de Chile..
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Joint custody, marriages, divorces and the rest
    by René Böheim in Econ Tidbits on 2012-12-05 11:55:00
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Cited by:
  1. de Blasio, Guido & Vuri, Daniela, 2013. "Joint Custody in the Italian Courts," IZA Discussion Papers 7472, Institute for the Study of Labor (IZA).

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