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Accounting for Changes in the Labor Supply of Recently Divorced Women

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  • William R. Johnson
  • Jonathan Skinner

Abstract

How much of the rise in women's labor supply associated with divorce can be attributed to observable changes in the wife's environment? Such changes include a reduction in nonwage family income, a rise in her after-tax wage rate, changes in the number of children present, and a reduction in husband's hours at home. We use panel data to address this question. When we do not account for individual effects, we find that changes in observables are important, but a residual effect dependent solely on marital status remains. In estimates that do control for individual heterogeneity, observable changes in the wife's environment account for even less of the total shift in labor supply.

Suggested Citation

  • William R. Johnson & Jonathan Skinner, 1988. "Accounting for Changes in the Labor Supply of Recently Divorced Women," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 417-436.
  • Handle: RePEc:uwp:jhriss:v:23:y:1988:i:4:p:417-436
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    Cited by:

    1. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.
    2. Robert Weagley & Min-Lee Chan & Jiahui Yan, 2007. "Married Couples’ Time Allocation Decisions and Marital Stability," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 507-525, September.
    3. Matthias Staat & Gerhard Wagenhals, 1996. "Lone mothers: A review," Journal of Population Economics, Springer;European Society for Population Economics, pages 131-140.
    4. Sigve Tjøtta & Kjell Vaage, 2008. "Public transfers and marital dissolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 419-437, April.
    5. Christopher Tamborini & Howard Iams & Gayle Reznik, 2012. "Women’s Earnings Before and After Marital Dissolution: Evidence from Longitudinal Earnings Records Matched to Survey Data," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 69-82, March.
    6. Alison Aughinbaugh, 2010. "The effects of remarriage on women’s labor supply," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(4), pages 1151-1176, September.
    7. Mueller, Richard E., 2005. "The effect of marital dissolution on the labour supply of males and females: Evidence from Canada," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(6), pages 787-809, December.
    8. Papps, Kerry L., 2006. "The Effects of Divorce Risk on the Labour Supply of Married Couples," IZA Discussion Papers 2395, Institute for the Study of Labor (IZA).
    9. Marie W. Arneberg & John K. Dagsvik & Zhiyang Jia, 2002. "Labor Market Modeling Recognizing Latent Job Attributes and Opportunity Constraints An Empirical Analysis of Labor Market Behavior of Eritrean Women," Discussion Papers 331, Statistics Norway, Research Department.

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