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Housing Market Regulations and Strategic Divorce Propensity in China

Author

Listed:
  • James Alm

    (Tulane University)

  • Weizheng Lai

    (University of Maryland)

  • Xun Li

    (Wuhan University)

Abstract

In China’s regulated housing markets, a married couple may choose strategically to divorce in order to purchase more houses and/or purchase with more favorable financial conditions. Our study examines the propensity of strategic divorce induced by housing market regulations in China. To overcome the difficulty of using conventional divorce data to disentangle a “true” divorce and a strategic (or a “fake”) divorce, we design an identification strategy using data on internet searches for divorce- and marriage-related keywords in 32 Chinese major cities from 2009 through 2016. Our difference-in-differences estimates provide robust evidence that housing market regulations significantly increase the propensity of strategic divorce. Our results also show that the increase in the propensity of strategic divorce is weaker in the cities with higher male-female ratios and with stronger Confucian ideologies. These findings point to the role that housing market regulations play in distorting a family’s choices, as well as to the importance for policymakers to consider unintended impacts of regulations.

Suggested Citation

  • James Alm & Weizheng Lai & Xun Li, 2021. "Housing Market Regulations and Strategic Divorce Propensity in China," Working Papers 2119, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:2119
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    File URL: http://repec.tulane.edu/RePEc/pdf/tul2119.pdf
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    Citations

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    Cited by:

    1. Zhengyuan Chai & Yi Yang & Yangyang Zhao & Yonghu Fu & Ling Hao, 2021. "Exploring the Effects of Contextual Factors on Residential Land Prices Using an Extended Geographically and Temporally Weighted Regression Model," Land, MDPI, vol. 10(11), pages 1-20, October.
    2. Antinyan, Armenak & Asatryan, Zareh & Dai, Zhixin & Wang, Kezhi, 2021. "Does the frequency of reminders matter for their effectiveness? A randomized controlled trial," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 752-764.
    3. Tongtong Qiu & Siliang Wang, 2024. "Housing Tenure, Intrahousehold Homeownership Structure and Health," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 19(4), pages 2035-2062, August.
    4. Lai, Weizheng, 2024. "The effect of education on voter turnout in China's rural elections," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 230-247.
    5. Hong Liu & Lili Liu & Fei Wang, 2023. "Housing wealth and fertility: evidence from China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 359-395, January.
    6. Konstantin A. Kholodilin, 2025. "The Impact of Governmental Regulations on Housing Market: Findings of a Meta-Study of Empirical Literature," Discussion Papers of DIW Berlin 2113, DIW Berlin, German Institute for Economic Research.
    7. Zheng Chang & Weifeng Li & Mi Diao & Xin Li, 2024. "Marriage entry, divorce and reconciliation: The unintended consequence of the home purchase restriction policy in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    8. Fang, Ming & Lai, Weizheng & Xia, Congling, 2025. "Anti-corruption and political trust: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    9. Xiaokuai Shao & Ming Gao, 2025. "Second-home tax and tax avoidance in the housing market," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 79(2), pages 561-601, March.

    More about this item

    Keywords

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    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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