EconStor >
The Economic and Social Research Institute (ESRI), Dublin >
ESRI Working Papers, The Economic and Social Research Institute (ESRI) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/50153
  
Title:Female labour supply and divorce: New evidence from Ireland PDF Logo
Authors:Bargain, Olivier
González, Libertad.
Keane, Claire
Özcan, Berkay
Issue Date:2010
Series/Report no.:ESRI working paper 346
Abstract:If participation in the labour 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 labour 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 labour 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.
Subjects:divorce law, natural experiment labour supply
fixed effects
propensity score.
Document Type:Working Paper
Appears in Collections:ESRI Working Papers, The Economic and Social Research Institute (ESRI)

Files in This Item:
File Description SizeFormat
632226366.pdf409.42 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/50153

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.