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Bargaining at Divorce: The Allocation of Custody

Author

Listed:
  • Atteneder, Christine

    (University of Linz)

  • Halla, Martin

    (Vienna University of Economics and Business)

Abstract

We model the bargaining process of parents over custody at the time of divorce. First we assume an institutional setting where only sole custody is available. In a second step we reform this institutional setting and introduce the possibility of joint custody. We show that some parents, who would not be able to find an agreement in a sole custody regime, can find an agreement after the joint custody reform. Accordingly, our empirical analysis shows that the introduction of joint custody enables more parents to divorce by mutual consent.

Suggested Citation

  • Atteneder, Christine & Halla, Martin, 2007. "Bargaining at Divorce: The Allocation of Custody," IZA Discussion Papers 2544, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp2544
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    References listed on IDEAS

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    1. Francesconi, Marco & Muthoo, Abhinay, 2003. "An Economic Model of Child Custody," IZA Discussion Papers 857, IZA Network @ LISER.
    2. Martin Schüler, 2005. "Germany," Chapters, in: Donato Masciandaro (ed.), Handbook of Central Banking and Financial Authorities in Europe, chapter 12, Edward Elgar Publishing.
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    4. Giulio Fella & Paola Manzini & Marco Mariotti, 2004. "Does Divorce Law Matter?," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 607-633, June.
    5. Rainer, Helmut, 2007. "Should we write prenuptial contracts?," European Economic Review, Elsevier, vol. 51(2), pages 337-363, February.
    6. Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-426, March.
    7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    8. Imran Rasul, 2006. "The Economics of Child Custody," Economica, London School of Economics and Political Science, vol. 73(289), pages 1-25, February.
    9. Del Boca, Daniela & Ribero, Rocio, 1998. "Transfers in non-intact households," Structural Change and Economic Dynamics, Elsevier, vol. 9(4), pages 469-478, December.
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    Cited by:

    1. Guido de Blasio & Daniela Vuri, 2019. "Effects of the Joint Custody Law in Italy," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 16(3), pages 479-514, September.
    2. Mikhail Freer & Khushboo Surana, 2023. "Stable Marriage, Children, and Intrahousehold Allocations," Papers 2302.08541, arXiv.org.
    3. Martin Halla, 2013. "The Effect Of Joint Custody On Family Outcomes," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 278-315, April.
    4. de Blasio, Guido & Vuri, Daniela, 2013. "Joint Custody in the Italian Courts," IZA Discussion Papers 7472, IZA Network @ LISER.
    5. González-Val, Rafael & Marcén, Miriam, 2012. "Unilateral divorce versus child custody and child support in the U.S," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 613-643.
    6. González-Val, Rafael & Marcén, Miriam, 2010. "Unilateral Divorce vs. Child Custody and Child Support in the U.S," MPRA Paper 24695, University Library of Munich, Germany.

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    More about this item

    Keywords

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    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
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
    • D1 - Microeconomics - - Household Behavior
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory

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