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Spousal Conflict and Divorce

  • Zhylyevskyy, Oleksandr

The optimal balance between keeping marriages intact, despite spousal conflict, and allowing for divorce is a subject of policy debate in the United States. To explore the tradeoffs, I construct a structural model with information asymmetries, which may generate inefficient outcomes. Parameters are estimated using data from the National Survey of Families and Households. I find that eliminating separation periods decreases the conflict rate by 9.2% of its baseline level and increases the divorce rate by 4.0%. Perfect child support enforcement decreases the frequency of conflict and divorce by 2.7% and 21.2%, respectively, and reduces the incidence of inefficient divorces.

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File URL: http://www.jstor.org/stable/10.1086/666654
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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers Archive with number 34813.

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Date of creation: 01 Oct 2012
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Publication status: Published in Journal of Labor Economics, October 2012, vol. 30 no. 4, pp. 915-962
Handle: RePEc:isu:genres:34813
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Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070

Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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