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The Effect of Changing Financial Incentives on Repartnering

Hayley Fisher () and Anna Zhu ()
Additional contact information
Anna Zhu: RMIT University

No 10243, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines how a reduction in the financial resources available to lone parents affects repartnering. We exploit an Australian natural experiment that reduced the financial resources available to a subset of separating parents. Using biweekly administrative data capturing separations occurring among low and middle income couples, we show that the policy reform significantly increased the repartnering hazard for affected separating mothers, especially those with low labour force attachment. Reconciliation with the woman's prior partner drives this result. Complementary analysis of an annual panel survey demonstrates that repartnering impacts are also present over the five years post-separation and that the impact on repartnering hazards is increasing in the extent of financial loss and the urgency of the impact. Together, these results demonstrate that one way that lone mothers respond to a reduction in financial resources available at the time of relationship breakdown is by repartnering more quickly.

Keywords: repartnering; lone parents; relationship breakdown (search for similar items in EconPapers)
JEL-codes: J12 J18 H53 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2016-09
New Economics Papers: this item is included in nep-pbe
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Related works:
Working Paper: The Effect of Changing Financial Incentives on Repartnering (2016) Downloads
Working Paper: The Effect of Changing Financial Incentives of Repartnering (2016) Downloads
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