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The risk of divorce and household saving behavior

González, Libertad and Özcan, Berkay (2013) The risk of divorce and household saving behavior. Journal of Human Resources, 48 (2). pp. 404-434. ISSN 0022-166X

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Abstract

We analyze the causal impact of an increase in the risk of marital dissolution on the saving behavior of married couples. We use the legalization of divorce in Ireland in 1996 as an exogenous shock to the risk of divorce. We propose several comparison groups (unaffected by the law change) that allow us to use a difference-in-differences approach. Our findings suggest that the legalization of divorce led to a significant increase in the propensity to save by married individuals, which is consistent with individuals saving more as a response to the increase in the probability of marital breakup.

Item Type: Article
Official URL: http://jhr.uwpress.org/
Additional Information: © 2013 Board of Regents of the University of Wisconsin System
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HQ The family. Marriage. Woman
Journal of Economic Literature Classification System: D - Microeconomics > D1 - Household Behavior and Family Economics
Sets: Departments > Social Policy
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 30 Aug 2013 14:01
URL: http://eprints.lse.ac.uk/52179/

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