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Loss of Marital Gains from the Division of Labor and Divorce: Evidence from a Pension Reform in Japan

Author

Listed:
  • Junya Hamaaki

    (Faculty of Economics, Hosei University)

  • Yoshitomo Ogawa

    (Faculty of Economics, Kwansei Gakuin University)

Abstract

We examine the impact of Japan's pension reform on divorce. In typical Japanese couples, spouses enjoy marital gains from the division of labor, not only during their younger years but also into old age, with the primary earner generating income through pension benefits and the dependent spouse contributing through household work. The reform allowed dependent spouses to claim half of the primary earner's pension contributions during the marriage upon divorce. Thus, dependent spouses could secure these gains without maintaining marital relationships. Using the reform as a natural experiment, we test the hypothesis that the reduction in marital gains increased the likelihood of divorce. Our analysis reveals that among couples experiencing the largest reduction in these gains, divorce incidents rose by 10 to 20% in a few years after the reform. This finding highlights the importance of marital gains from the division of labor in shaping divorce decisions.

Suggested Citation

  • Junya Hamaaki & Yoshitomo Ogawa, 2025. "Loss of Marital Gains from the Division of Labor and Divorce: Evidence from a Pension Reform in Japan," Discussion Paper Series 289, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:289
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Divorce; Marital gains; Pension reform; Marital property division;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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