The Risk of Divorce and Household Saving Behavior

A-Tier
Journal: Journal of Human Resources
Year: 2013
Volume: 48
Issue: 2

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:uwp:jhriss:v:48:y:2013:ii:1:p:404-434
Journal Field
Labor
Author Count
2
Added to Database
2026-01-25