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Does custody law affect family behavior in and out of marriage?

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  • René Böheim
  • Mario Francesconi
  • Martin Halla

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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File URL: http://www.econ.jku.at/papers/2012/wp1212.pdf
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Bibliographic Info

Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2012-12.

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Length: 36 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:jku:econwp:2012_12

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Keywords: Divorce; Fertility; Bargaining; Intrahousehold Allocations; Austria;

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References

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  1. Alesina, Alberto & Giuliano, Paola, 2006. "Divorce, Fertility and the Shot Gun Marriage," IZA Discussion Papers 2157, Institute for the Study of Labor (IZA).
  2. Imran Rasul, 2006. "Marriage Markets and Divorce Laws," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 22(1), pages 30-69, April.
  3. Fersterer, Josef & Winter-Ebmer, Rudolf, 1999. "Are Austrian Returns to Education Falling Over Time?," IZA Discussion Papers 72, Institute for the Study of Labor (IZA).
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  7. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
  8. Stevenson, Betsey & Wolfers, Justin, 2003. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," Research Papers 1828, Stanford University, Graduate School of Business.
  9. 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, Springer, vol. 5(2), pages 181-207, June.
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  11. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 110(1), pages 37-72, February.
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  13. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 219-265.
  14. 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, Instituto de Economia. Pontificia Universidad Católica de Chile. 424, Instituto de Economia. Pontificia Universidad Católica de Chile..
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  17. Rafael Lalive & Josef Zweimüller, . "Does Parental Leave Affect Fertility and Return-to-Work? Evidence from a ”True Natural Experiment”," IEW - Working Papers 242, Institute for Empirical Research in Economics - University of Zurich.
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  20. 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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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. Guido de Blasio & Daniela Vuri, 2013. "Joint Custody in the Italian Courts," CEIS Research Paper 284, Tor Vergata University, CEIS, revised 03 Jul 2013.

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