Divorce Laws and Divorce Rate in the U.S.

Stefania Marcassa (1)

1 THEMA - Théorie économique, modélisation et applications

At the end of the 1960s, the U.S. divorce law underwent major changes and the divorce rate almost doubled in all of the states. This paper shows that changes in property division, alimony transfers, and child custody assignments account for a substantial share of the increase in the divorce rate, especially for young, college educated couples with children. I solve and calibrate a model where agents make decisions on their marital status, savings, and labor supply. Under the new financial settlements, divorced men gain from a higher share of property, while women gain from an increase in alimony and child support transfers. The introduction of the unilateral decision to divorce has limited effects.

Domaines: Economies et finances

Stefania Marcassa. Divorce Laws and Divorce Rate in the U.S.. B.E. Journal of Macroeconomics, 2013, 13 (1), pp.10.1515/bejm-2012-0149. ⟨hal-00865640⟩