Arbeitspapier

Are intra-household allocations policy neutral? Theory and empirical evidence

We develop a collective household model with spousal matching in which there exists marital gains to assortative matching and marriage quality for each couple is revealed ex post. Changes in alimony laws are shown to affect existing couples and couples-to-be differently. For existing couples, legislative changes that favor (wo)men benefit them especially if the marriage match quality is low, while, for couples not yet formed, they generate offsetting intra-household transfers and lower intra-marital allocations for the spouses who are the intended beneficiary. We then estimate the effect of granting alimony rights to cohabiting couples in Canada using a triple-difference framework since each province extended these rights in different years and requiring different cohabitation length. We find that obtaining the right to petition for alimony led women to lower their labor force participation. These results, however, do not hold - and, in some cases, are reversed - for newly formed cohabiting couples.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 5594

Classification
Wirtschaft
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Economics of Gender; Non-labor Discrimination
Human Capital; Skills; Occupational Choice; Labor Productivity
Subject
intra-household allocations
matching
cohabitation
alimony laws
Familienökonomik
Lebensgemeinschaft
Unterhaltsrecht
Wirkungsanalyse
Ehe
Matching
Kanada

Event
Geistige Schöpfung
(who)
Chiappori, Pierre-André
Iyigun, Murat
Lafortune, Jeanne
Weiss, Yoram
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2011

Handle
URN
urn:nbn:de:101:1-201104134161
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Chiappori, Pierre-André
  • Iyigun, Murat
  • Lafortune, Jeanne
  • Weiss, Yoram
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2011

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