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dc.contributor.authorBargain, Olivieren_US
dc.contributor.authorGonzález, Libertaden_US
dc.contributor.authorKeane, Claireen_US
dc.contributor.authorÖzcan, Berkayen_US
dc.description.abstractIf 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 divorce legislation (e.g., across US states), leading to mixed results. In this paper, we suggest testing this hypothesis by exploiting a more radical policy change, i.e., the 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 the Irish society as a natural experiment. We follow a difference-in-difference approach, using families for whom the dissolution risk is small as a control group. Our results suggest that the legalization of divorce contributed to a significant increase in female labor supply, mostly at the extensive margin. Results are not driven by selection and are robust to several specification checks, including the introduction of household fixed effects and an improved match between control and treatment groups using propensity score reweighting.en_US
dc.publisherInstitute for the Study of Labor (IZA) Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 4959en_US
dc.subject.keywordDivorce lawen_US
dc.subject.keywordnatural experimenten_US
dc.subject.keywordlabor supplyen_US
dc.subject.keywordfixed effectsen_US
dc.subject.keywordpropensity scoreen_US
dc.titleFemale labor supply and divorce: New evidence from Irelanden_US
dc.typeWorking Paperen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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