Loss of Marital Gains from the Division of Labor and Divorce: Evidence from a Pension Reform in Japan

Junya Hamaaki and Yoshitomo Ogawa ()
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Yoshitomo Ogawa: Faculty of Economics, Kwansei Gakuin University

No 289, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: We examine the impact of Japan's pension reform on divorce. In typical Japanese couples, spouses enjoy marital gains from the division of labor, not only during their younger years but also into old age, with the primary earner generating income through pension benefits and the dependent spouse contributing through household work. The reform allowed dependent spouses to claim half of the primary earner's pension contributions during the marriage upon divorce. Thus, dependent spouses could secure these gains without maintaining marital relationships. Using the reform as a natural experiment, we test the hypothesis that the reduction in marital gains increased the likelihood of divorce. Our analysis reveals that among couples experiencing the largest reduction in these gains, divorce incidents rose by 10 to 20% in a few years after the reform. This finding highlights the importance of marital gains from the division of labor in shaping divorce decisions.

Keywords: Divorce; Marital gains; Pension reform; Marital property division (search for similar items in EconPapers)
JEL-codes: D13 H31 J12 K36 (search for similar items in EconPapers)
Pages: 80 pages
Date: 2025-03
New Economics Papers: this item is included in nep-age
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