The economic impact of divorce law reform

Abstract

The role no-fault divorce plays in lowering the economic well-being of women remains controversial. This paper attempts to shed light on this issue by surveying the literature and presenting new evidence that also considers state laws governing the distribution of marital property at divorce. The data suggest that the economic impact of no-fault divorce is very sensitive to the type of marital property law in each state. Under certain marital property laws the adoption of no-fault divorce may even be welfare improving for married women.

An Economic Framework and Selected Proposals for Demonstrations Aimed At Strengthening Marriage, Employment, and Family Functioning Outcomes

“…We look first at how marital status and marital flows affect earnings. Though the earnings gains induced by marriage could come from added hours or higher wages, most of the literature examines how marriage affects the wage rates of men (Chun and Lee 2001;Cornwell and Rupert 1997;Daniel 1995;Ginther and Zavodny 2001;Gray 1996;Korenman and Newmark 1991;Loh 1996;and Stratton 2002) and not their labor supply. The focus of recent studies of male wage premiums is on distinguishing a pure causal effect of marriage from a selection effect in which men who are especially capable in the labor market are more likely to marry than other men.…”