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 IZA Network @ LISER

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: relationship breakdown; lone parents; repartnering (search for similar items in EconPapers)
JEL-codes: H53 J12 J18 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2016-09
New Economics Papers: this item is included in nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Economic Journal, 2019, 129 (623), 2833 - 2866

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https://docs.iza.org/dp10243.pdf (application/pdf)

Related works:
Journal Article: The Effect of Changing Financial Incentives on Repartnering (2019)
Working Paper: The Effect of Changing Financial Incentives on Repartnering (2016)
Working Paper: The Effect of Changing Financial Incentives of Repartnering (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp10243

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