RT Journal Article
SR Electronic
T1 The Risk of Divorce and Household Saving Behavior
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 404
OP 434
DO 10.3368/jhr.48.2.404
VO 48
IS 2
A1 González, Libertad
A1 Özcan, Berkay
YR 2013
UL http://jhr.uwpress.org/content/48/2/404.abstract
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.