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Less Alimony after Divorce – Spouses’ Behavioral Response to the 2008 Alimony Reform in Germany

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  • Julia Bredtmann
  • Christina Vonnahme

Abstract

The 2008 alimony reform in Germany considerably reduced post-marital and caregiver alimony. We analyze how individuals adapted to these changed rulings in terms of labor supply, the intra-household allocation of leisure, and marital stability. We use the German Socio-Economic Panel (SOEP) and conduct a difference-in-difference analysis to investigate couples’ behavioral responses to the reform. The results do not confirm theoretical expectations from labor supply and household bargaining models. In particular, we do not find evidence that women increase their labor supply as a result of the negative expected income effect. Neither do our results reveal that leisure is shifted from women to men as a response to the changed bargaining positions. In contrast, we find evidence that the reform has led to an increase in the probability to separate for married as opposed to non-married cohabiting couples.

Suggested Citation

  • Julia Bredtmann & Christina Vonnahme, 2017. "Less Alimony after Divorce – Spouses’ Behavioral Response to the 2008 Alimony Reform in Germany," SOEPpapers on Multidisciplinary Panel Data Research 942, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp942
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    References listed on IDEAS

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    Cited by:

    1. Schaubert, Marianna, 2018. "Do Alimony Regulations Matter inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law," EconStor Preprints 173193, ZBW - Leibniz Information Centre for Economics.
    2. Schaubert, Marianna, 2018. "Do Alimony Regulations Matter inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181508, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Alimony; marital instability; female labor supply; intra-household bargaining;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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