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Divorce Laws and Divorce Rate in the U.S

  • Stefania Marcassa

    ()

    (THEMA - Théorie économique, modélisation et applications - CNRS : UMR8184 - Université de Cergy Pontoise)

At the end of the 1960s, the U.S. divorce law underwent major changes and the divorce rate almost doubled in all of the states. This paper shows that changes in property division, alimony transfers, and child custody assignments account for a substantial share of the increase in the divorce rate, especially for young, college educated couples with children. I solve and calibrate a model where agents make decisions on their marital status, savings, and labor supply. Under the new financial settlements, divorced men gain from a higher share of property, while women gain from an increase in alimony and child support transfers. The introduction of the unilateral decision to divorce has limited effects.

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Paper provided by HAL in its series Post-Print with number hal-00865640.

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Date of creation: 28 Aug 2013
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Publication status: Published, BE Journal of Macroeconomics, 2013, 13, 1, 10.1515/bejm-2012-0149
Handle: RePEc:hal:journl:hal-00865640
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00865640
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  1. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique.
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  8. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
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  11. Imran Rasul, 2006. "Marriage Markets and Divorce Laws," Journal of Law, Economics and Organization, Oxford University Press, vol. 22(1), pages 30-69, April.
  12. Clark, Simon, 1999. "Law, Property, and Marital Dissolution," Economic Journal, Royal Economic Society, vol. 109(454), pages C41-54, March.
  13. Attanasio, O. & Low, H. & Sanchez-Marcos, V., 2004. "Explaining Changes in Female Labour Supply in a Life-cycle Model," Cambridge Working Papers in Economics 0451, Faculty of Economics, University of Cambridge.
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  25. repec:dgr:uvatin:2008018 is not listed on IDEAS
  26. Shintaro Yamaguchi & Claudia Ruiz & Maurizio Mazzocco, 2014. "Labor Supply, Wealth Dynamics and Marriage Decisions," 2014 Meeting Papers 210, Society for Economic Dynamics.
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