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Divorce and Property Division Laws Shape Human Capital Investment

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  • Peter Q. Blair
  • Elijah Neilson

Abstract

In theory, unilateral divorce laws alter the private incentive to invest in human capital by permitting either spouse to initiate the division of the marital assets. Using several causal research designs we show that both men and women are less likely to attain a bachelor’s degree in states with unilateral divorce laws—especially individuals who were exposed to the laws when making educational choices and who live in states requiring an even split of assets upon divorce. Unilateral divorce laws do not distort human capital investment generically—but rather in contexts where the property division laws invite moral hazard.

Suggested Citation

  • Peter Q. Blair & Elijah Neilson, 2023. "Divorce and Property Division Laws Shape Human Capital Investment," NBER Working Papers 31545, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31545
    Note: CH ED LE LS
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    More about this item

    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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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