Cookies?
Library Header Image
LSE Research Online LSE Library Services

Female labor supply and divorce: new evidence from Ireland

Bargain, Olivier , González, Libertad , Keane, Claire and Özcan, Berkay (2012) Female labor supply and divorce: new evidence from Ireland. European Economic Review, 56 (8). pp. 1675-1691. ISSN 0014-2921

Full text not available from this repository.

Abstract

If participation in the labor market helps to secure women's outside options in the case of divorce/separation, an increase in the perceived risk of marital dissolution may accelerate the increase in female labor supply. This simple prediction has been tested in the literature using time and/or spatial variation in the US divorce legislation. In this paper, we suggest testing this hypothesis by exploiting a more radical policy change, i.e., the actual legalization of divorce. In Ireland, the right to divorce was introduced in 1996, followed by an acceleration of marriage breakdown rates. We use this fundamental change in Irish society as a natural experiment. Using families for whom the risk of marital dissolution is small as a control group, our difference-in-difference estimates suggest that the legalization of divorce contributed to a significant increase in female labor supply, occurring essentially at the extensive margin. Results are not driven by selection and are robust to numerous specification checks, including the introduction of household fixed effects and propensity score reweighting.

Item Type: Article
Official URL: http://www.journals.elsevier.com/european-economic...
Additional Information: © 2012 Elsevier
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HQ The family. Marriage. Woman
Journal of Economic Literature Classification System: D - Microeconomics > D1 - Household Behavior and Family Economics > D10 - General
D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation
J - Labor and Demographic Economics > J1 - Demographic Economics > J12 - Marriage; Marital Dissolution; Family Structure
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J22 - Time Allocation and Labor Supply
Sets: Departments > Social Policy
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 22 Oct 2012 08:21
URL: http://eprints.lse.ac.uk/46886/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only