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Do Alimony Regulations Matter Inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law

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  • Marianna Schaubert

    (Fraunhofer Institute for Applied Information Technology FIT)

Abstract

This study investigates how West German spouses have responded to the alimony reform introduced in 2008. This reform imposed financial self-responsibility after a finalized divorce. It weakened the relative bargaining position of the spouse with a claim for maintenance in the case of a potential divorce before the law change. Therefore, the present study helps to verify bargaining models by considering this policy change as a shift of spousal bargaining power. Estimating difference-in-differences models, I find that, indeed, wives who face a potential alimony loss might have increased their working hours as a result of the 2008 reform. Thus, this finding suggests that family law may affect labor market outcomes. To my knowledge, the present investigation is the first analysis of the behavioral response of individuals in longer marriages to this change in alimony law. Its approach to identifying those who have been (dis)advantaged by this reform is a new one, proposing a method that reflects the realities of alimony arrangements.

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  • Marianna Schaubert, 2023. "Do Alimony Regulations Matter Inside Marriage? Evidence from the 2008 Reform of the German Maintenance Law," Journal of Labor Research, Springer, vol. 44(1), pages 145-178, June.
    • Handle: RePEc:spr:jlabre:v:44:y:2023:i:1:d:10.1007_s12122-022-09340-3
    DOI: 10.1007/s12122-022-09340-3
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    1. Usman, Sehrish, 2024. "Preparing for the worst: post-divorce instability risk and economic behaviour of households," MPRA Paper 122675, University Library of Munich, Germany.
    2. Usman, Sehrish, 2024. "Preparing for the worst: post-divorce instability risk and economic behaviour of households," MPRA Paper 122806, University Library of Munich, Germany, revised 27 Nov 2024.

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    More about this item

    Keywords

    Alimony; Marriage; Intra-household bargaining; Institutional change; Labor supply; Time allocation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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