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Transfers among Divorced Couples: Evidence and Interpretation
Author(s) -
Yoram Weiss,
Robert J. Willis
Publication year - 1993
Publication title -
journal of labor economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 8.184
H-Index - 109
eISSN - 1537-5307
pISSN - 0734-306X
DOI - 10.1086/298310
Subject(s) - earnings , wife , economics , welfare , demographic economics , national longitudinal surveys , longitudinal data , white (mutation) , labour economics , sociology , political science , demography , law , market economy , biochemistry , chemistry , accounting , gene
An analysis of the economic impact of divorce settlements in the United States is presented using data for a white cohort taken from the National Longitudinal Study of the High School Class of 1972. "The effects of spouses' incomes on the divorce transfer are estimated and used to simulate the welfare effects of divorce on husbands, wives, and children under alternative assumptions about marriage contracts and the ability of a couple to continue coordinating resources in the aftermath of divorce. We find a positive (negative) relationship between divorce transfers and the growth of husband's (wife's) earnings during marriage. The estimated expenditure on children in the divorce state is only half the accustomed level during marriage."

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