Women’s employment, income and divorce in West Germany: a causal approach

Daniel Brüggmann ()
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Daniel Brüggmann: Hertie School

Journal for Labour Market Research, 2020, vol. 54, issue 1, 1-22

Abstract: Abstract In this paper, I assess the employment and income effect of divorce for women in West Germany between 2000 and 2005. With newly available administrative data that allows me to adopt a causal approach, I find strong negative employment effects with respect to marginal employment and strong positive effects with respect to regular employment. However, in sum, the overall employment rate (marginal and regular employment combined) is not affected. Furthermore, the lower the labor market attachment before separation is, the more pronounced employment effects are. In addition, I also estimate the impact of divorce on daily gross incomes. I find no convincing evidence for an income effect. I conclude that a divorce might have a pure labor supply effect only.

Keywords: Divorce; Female employment; Propensity score matching; Difference-in-difference; Boosted regression; Principal stratification; Sample selection (search for similar items in EconPapers)
JEL-codes: C14 J12 J22 J3 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1186/s12651-020-00270-0

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