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IZA Discussion Paper No. 14949
December 2021
The Effect of Alimony Reform on Married Women's Labor Supply: Evidence from the American Time Use Survey

published online in: Journal of Policy Analysis and Management, 25 November 2024

Reforms that reduce alimony can affect married couples in two different ways. First, reduced alimony lowers the bargaining power of the payee, usually the wife. Second, reduced alimony lowers the incentives of wives to engage in the traditional male breadwinner model of household specialization. Using the American Time Use Survey and exploiting a series of recent reforms in several US states that reduced the entitlements of eligible spouses, we find that wives surprised by the reforms reacted by moving away from the traditional male breadwinner model of household specialization. We also find that highly educated women substituted work for time devoted to housework and childcare, while less educated wives substituted work for leisure and personal time. We find no effects for men. The fact that the reforms reduced fertility only among women with higher education suggests that the difference between them and less educated wives in the response to reduced alimony is due, at least in part, to differences in their preferences and costs for children. The estimated effects are larger among couples with a large difference in the earnings potential of spouses and are robust to several sensitivity tests.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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