PT  - JOURNAL ARTICLE
AU  - González, Libertad
AU  - Özcan, Berkay
TI  - The Risk of Divorce and Household Saving Behavior
AID  - 10.3368/jhr.48.2.404
DP  - 2013 Mar 31
TA  - Journal of Human Resources
PG  - 404--434
VI  - 48
IP  - 2
4099  - http://jhr.uwpress.org/content/48/2/404.short
4100  - http://jhr.uwpress.org/content/48/2/404.full
SO  - J Hum Resour2013 Mar 31; 48
AB  - 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.