The Ant or the Grasshopper? The Long-term Consequences of Unilateral Divorce Laws on Savings of European Households

Viola Angelini, Marco Bertoni, Luca Stella () and Christoph Weiss

No 10363, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: By allowing people to obtain divorce without the consent of their spouse, Unilateral Divorce Laws (UDLs) increase the risk of divorce. Using the staggered introduction of UDLs across European countries, we show that households exposed to UDLs for longer time accumulate more savings. This effect holds for both financial and total wealth and is stronger at higher quantiles of the wealth distribution. Longer exposure to UDLs also increases female labour market participation and financial literacy, contributing to uncover the mechanisms through which the risk of divorce may affect savings. Our results are consistent with a precautionary motive for saving.

Keywords: financial literacy; household savings; divorce (search for similar items in EconPapers)
JEL-codes: G11 J12 J22 J32 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016-11
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: European Economic Review, 2019, 119, 97-113

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Journal Article: The ant or the grasshopper? The long-term consequences of Unilateral Divorce Laws on savings of European households (2019)
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