EconPapers    
Economics at your fingertips  
 

Income Effects of Divorce in Families with Dependent Children

Espen Bratberg () and Sigve Tjøtta ()

No 20/02, Working Papers in Economics from University of Bergen, Department of Economics

Abstract: Marital splits may affect the economic well-being of families with children significantly. We study the economic effects of divorce in such families in Norway, using administrative information on more than 60,000 individuals. In the typical case, where the mother has custody, the mother (and child) lacks behind before maintenance payments, but after adding these, the outcomes at the median are very similar. However, the median pre-post divorce income reduction is larger for custodial women than for non-custodial men, they have larger risks of an income drop, and larger probabilities of an aggravated position in the income distribution. We also supplement the measures of realized net incomes with an estimate of earnings capabilities. Though not affecting the ranking of the different groups, these calculations indicate that measures based on realized incomes may underrate the well-being of individuals who do not work full-time. The analysis also includes a sensitivity analysis of important parameters in the equivalence scales. An important feature of the Norwegian ”post-divorce package” is that the Government guarantees a minimum level for, and enforces, maintenance payments from the non-custodian to the custodian parent. The system emerges from our analysis as having an equalizing effect on the economic costs of divorce.

Keywords: Marital dissolution; income distribution; income changes; child custody; equivalence scales. (search for similar items in EconPapers)
JEL-codes: D31 I38 J12 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2002-11-15
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ekstern.filer.uib.no/svf/2002/20-02.pdf Full text (application/pdf)

Related works:
Journal Article: Income effects of divorce in families with dependent children (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2002_020

Access Statistics for this paper

More papers in Working Papers in Economics from University of Bergen, Department of Economics Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Kjell Erik Lommerud ().

 
Page updated 2020-11-23
Handle: RePEc:hhs:bergec:2002_020