Document Type
Working Paper
Publication Date
2014
College/Unit
Chambers College of Business and Economics
Document Number
14-32
Department/Program/Center
Economics
Abstract
The unilateral divorce reform in the 1970's has been accompanied by a secular de- cline in marriage. This paper investigates how the homemaking provision in divorce law that gives recognition to homemakers' contribution during marriage in divorce property division affects marital formation and dissolution. Hypothetically the provision enhances the commitment to homemakers in marriage, which would increase the incentives to form marriage as it encourages spousal co-operation in time-allocation and marriage-specific investment. I find evidence that the homemaking provision stimulates marriage using both state and individual level data. The law also lowers divorce risk for individuals married prior to the reform by at least 9.7 percent.
Digital Commons Citation
Wong, Ho-Po Crystal, "The Importance of Credible Commitments in Marriage: The Effect of Recognizing Homemakers' Contribution in Property Division at Divorce in Law on Marital Formation and Dissolution" (2014). Economics Faculty Working Papers Series. 125.
https://researchrepository.wvu.edu/econ_working-papers/125