TY - RPRT AU - Halla, Martin AU - Lackner, Mario AU - Scharler, Johann TI - Does the Welfare State Destroy the Family? Evidence from OECD Member Countries PY - 2013/Feb/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7210 UR - https://www.iza.org/publications/dp7210 AB - We study the effect of the size of the welfare state on family outcomes in OECD member countries. Exploiting exogenous variation in public social spending, due to varying degrees of political fractionalization (i.e. the number of relevant parties involved in the legislative process), we show that an expansion in the welfare state increases the fertility, marriage, and divorce rates with a quantitatively stronger effect on the marriage rate. We conclude that the welfare state supports family formation. Nevertheless, we also find that the welfare state decouples marriage and fertility, and therefore, alters the organization of the family. KW - welfare state KW - fertility KW - divorce KW - marriage KW - risk sharing ER -