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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

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  • Ho-Po Crystal Wong

    (West Virginia University, College of Business and Economics)

Abstract

The unilateral divorce reform in the 1970's has been accompanied by a secular decline 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.

Suggested Citation

  • Ho-Po Crystal Wong, 2014. "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," Working Papers 14-32, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:14-32
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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1122&context=econ_working-papers
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    References listed on IDEAS

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    More about this item

    Keywords

    credible commitments; divorce law; divorce; homemakers; marriage; property rights; unilateral divorce;
    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
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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