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The Long Term Effects of Legalizing Divorce on Children

Author

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  • Gonzalez, Libertad

    () (Universitat Pompeu Fabra)

  • Viitanen, Tarja

    () (University of Otago)

Abstract

We estimate the effect of divorce legalization on the long-term well-being of children. Our identification strategy relies on exploiting the different timing of divorce legalization across European countries. Using European Community Household Panel data, we compare the adult outcomes of cohorts who were raised in an environment where divorce was banned with cohorts raised after divorce was legalized in the same country. We also have "control" countries where all cohorts were exposed (or not exposed) to divorce as children, thus leading to a difference-in-differences approach. We find that women who grew up under legal divorce have lower earnings and income as well as worse health as adults compared with women who grew up under illegal divorce. These effects are not found for men. We find no effects of divorce legalization on children's family formation or dissolution patterns.

Suggested Citation

  • Gonzalez, Libertad & Viitanen, Tarja, 2008. "The Long Term Effects of Legalizing Divorce on Children," IZA Discussion Papers 3789, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3789
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    References listed on IDEAS

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    1. Betsey Stevenson, 2007. "The Impact of Divorce Laws on Marriage-Specific Capital," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 75-94.
    2. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
    3. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 1-25, June.
    4. Jonathan Gardner & Andrew J. Oswald, 2006. "Do divorcing couples become happier by breaking up?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(2), pages 319-336, March.
    5. Libertad González & Berkay Özcan, 2013. "The Risk of Divorce and Household Saving Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 404-434.
    6. Gordon B. Dahl & Enrico Moretti, 2008. "The Demand for Sons," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 1085-1120.
    7. González, Libertad & Viitanen, Tarja K., 2009. "The effect of divorce laws on divorce rates in Europe," European Economic Review, Elsevier, vol. 53(2), pages 127-138, February.
    8. Corak, Miles, 2001. "Death and Divorce: The Long-Term Consequences of Parental Loss on Adolescents," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 682-715, July.
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    12. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    13. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    14. Betsey Stevenson & Justin Wolfers, 2006. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 267-288.
    15. Betsey Stevenson, 2008. "Divorce Law and Women's Labor Supply," NBER Working Papers 14346, National Bureau of Economic Research, Inc.
    16. Cáceres-Delpiano, Julio & Giolito, Eugenio, 2008. "How Unilateral Divorce Affects Children," IZA Discussion Papers 3342, Institute of Labor Economics (IZA).
    17. Sanz-de-Galdeano, Anna & Vuri, Daniela, 2004. "Does Parental Divorce Affect Adolescents' Cognitive Development? Evidence from Longitudinal Data," IZA Discussion Papers 1206, Institute of Labor Economics (IZA).
    18. Berger, Lawrence & Brooks-Gunn, Jeanne & Paxson, Christina & Waldfogel, Jane, 2008. "First-year maternal employment and child outcomes: Differences across racial and ethnic groups," Children and Youth Services Review, Elsevier, vol. 30(4), pages 365-387, April.
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    Cited by:

    1. Fernández-Kranz, Daniel & Roff, Jennifer Louise & Sun, Hugette, 2018. "Can Reduced Child Support Make Joint Custody Bad for Children? The Role of Economic Incentives in U.S. Divorce Law on Child Outcomes," IZA Discussion Papers 12025, Institute of Labor Economics (IZA).
    2. Bargain, Olivier & González, Libertad & Keane, Claire & Özcan, Berkay, 2012. "Female labor supply and divorce: New evidence from Ireland," European Economic Review, Elsevier, vol. 56(8), pages 1675-1691.
    3. Proto, Eugenio & Sgroi, Daniel & Oswald, Andrew J., 2010. "Are Happiness and Productivity Lower among University Students with Newly-Divorced Parents? An Experimental Approach," Economic Research Papers 271000, University of Warwick - Department of Economics.
    4. Steffen Reinhold & Thorsten Kneip & Gerrit Bauer, 2013. "The long run consequences of unilateral divorce laws on children—evidence from SHARELIFE," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1035-1056, July.
    5. 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.
    6. Eugenio Proto & Daniel Sgroi & Andrew Oswald, 2012. "Are happiness and productivity lower among young people with newly-divorced parents? An experimental and econometric approach," Experimental Economics, Springer;Economic Science Association, vol. 15(1), pages 1-23, March.
    7. Schaubert, Marianna, 2018. "Do Alimony Regulations Matter inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181508, Verein für Socialpolitik / German Economic Association.
    8. Viitanen, Tarja, 2011. "Parental Divorce and Generalized Trust," IZA Discussion Papers 5898, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    divorce; legislation; intergenerational effects; child outcomes;

    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

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