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Does Custody Law Affect Family Behavior In and Out of Marriage?

  • Böheim, René

    ()

    (University of Linz)

  • Francesconi, Marco

    ()

    (University of Essex)

  • Halla, Martin

    ()

    (University of Innsbruck)

We examine the effect of joint custody on marriage, divorce, fertility and female employment in Austria using individual-level administrative data, covering the entire population. We also use unique data obtained from court records to analyze the effect on post-divorce outcomes. Our estimates show that joint custody significantly reduces divorce and female employment rates, significantly increases marriage and marital birth rates, and leads to a substantial increase in the total money transfer received by mothers after divorce. We interpret these results as evidence against Becker-Coase bargains and in support of a mechanism driven by a resource redistribution that favors men giving them greater incentives to invest in marriage specific capital.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7064.

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Length: 37 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7064
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  2. Imran Rasul, 2006. "Marriage Markets and Divorce Laws," Journal of Law, Economics and Organization, Oxford University Press, vol. 22(1), pages 30-69, April.
  3. Rafael Lalive & Josef Zweimüller, . "Does Parental Leave Affect Fertility and Return-to-Work? Evidence from a ”True Natural Experiment”," IEW - Working Papers 242, Institute for Empirical Research in Economics - University of Zurich.
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  5. Wolfers, Justin, 2003. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," Research Papers 1819, Stanford University, Graduate School of Business.
  6. Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February.
  7. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
  8. Alberto Alesina & Paola Giuliano, 2006. "Divorce, Fertility and the Shot Gun Marriage," NBER Working Papers 12375, National Bureau of Economic Research, Inc.
  9. Betsey Stevenson & Justin Wolfers, 2003. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," NBER Working Papers 10175, National Bureau of Economic Research, Inc.
  10. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
  11. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2011. "Parental leave and mothers' careers: the relative importance of job protection and cash benefits," ECON - Working Papers 042, Department of Economics - University of Zurich.
  12. Boheim, Rene & Ermisch, John, 2001. " Partnership Dissolution in the UK--The Role of Economic Circumstances," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(2), pages 197-208, May.
  13. 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.
  14. Weiss, Yoram & Willis, Robert J, 1993. "Transfers among Divorced Couples: Evidence and Interpretation," Journal of Labor Economics, University of Chicago Press, vol. 11(4), pages 629-79, October.
  15. 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.
  16. Sonia Oreffice, 2007. "Did the legalization of abortion increase women’s household bargaining power? Evidence from labor supply," Review of Economics of the Household, Springer, vol. 5(2), pages 181-207, June.
  17. Nunley, John M. & Seals Jr., Richard Alan, 2011. "Child-custody reform, marital investment in children, and the labor supply of married mothers," Labour Economics, Elsevier, vol. 18(1), pages 14-24, January.
  18. Chiappori, Pierre-André & Iyigun, Murat & Weiss, Yoram, 2007. "Public Goods, Transferable Utility and Divorce Laws," IZA Discussion Papers 2646, Institute for the Study of Labor (IZA).
  19. Del Boca, Daniela & Flinn, Christopher J, 1995. "Rationalizing Child-Support Decisions," American Economic Review, American Economic Association, vol. 85(5), pages 1241-62, December.
  20. Jeanne Lafortune & Pierre-Andre Chiappori & Murat Iyigun & Yoram Weiss, 2012. "Changing the Rules Midway: The Impact of Granting Alimony Rights on Existing and Newly-Formed Partnerships," Documentos de Trabajo 424, Instituto de Economia. Pontificia Universidad Católica de Chile..
  21. Weiss, Yoram & Willis, Robert J, 1985. "Children as Collective Goods and Divorce Settlements," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 268-92, July.
  22. Pierre-André Chiappori & Sonia Oreffice, 2008. "Birth Control and Female Empowerment: An Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 116(1), pages 113-140, 02.
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