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Do Alimony Regulations Matter inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law

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  • Schaubert, Marianna

Abstract

This study investigates how West German spouses have responded by adjusting their time allocation to the alimony reform introduced in 2008. This reform imposed financial self-responsibility after a finalized divorce. It weakened the relative bargaining position of the spouse with a claim for maintenance in the case of a potential divorce prior to the law change. Therefore, the present study helps to verify bargaining models by considering the 2008 policy change as a shift of spousal bargaining power. Estimating di_erence-in-di_erences models I find that, indeed, wives who face a potential low alimony loss might have increased their working hours as a result of the 2008 reform. To my knowledge, the present investigation is the first analysis of the behavioral response of individuals in longer marriages to the 2008 reform. Its approach to identifying those who have been (dis)advantaged by this reform is a new one, proposing a method that reflects the realities of alimony arrangements in Germany.

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  • Schaubert, Marianna, 2018. "Do Alimony Regulations Matter inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181508, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181508
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    2. Schaubert, Marianna, 2018. "Behavioral Response of Non-Resident Parents to Child Support Obligations: Evidence From SOEP," EconStor Preprints 203675, ZBW - Leibniz Information Centre for Economics.
    3. Schaubert, Marianna, 2022. "Do courts know how to incentivize? Behavioral response of non-resident parents to child support obligations," Children and Youth Services Review, Elsevier, vol. 137(C).

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    More about this item

    Keywords

    Alimony; family; bargaining; institutional change; labor supply; time allocation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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