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 fi ndings suggest that the legalization of divorce led to a signifi cant 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.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 404-434 |
| Number of pages | 31 |
| Journal | Journal of Human Resources |
| Volume | 48 |
| Issue number | 2 |
| DOIs | |
| State | Published - 2013 |
ASJC Scopus subject areas
- Economics and Econometrics
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation