Zhylyevskyy, Oleksandr

Journal of Labor Economics Vol. 30 no. 4 (October 1 2012): 915-962.

The optimal balance between keeping marriages intact, despite spousal conflict, and allowing for divorce is a subject of policy debate in the United States. To explore the tradeoffs, I construct a structural model with information asymmetries, which may generate inefficient outcomes. Parameters are estimated using data from the National Survey of Families and Households. I find that eliminating separation periods decreases the conflict rate by 9.2% of its baseline level and increases the divorce rate by 4.0%. Perfect child support enforcement decreases the frequency of conflict and divorce by 2.7% and 21.2%, respectively, and reduces the incidence of inefficient divorces.

JEL Classification: C78, D13, J12

Keywords: spousal conflict, divorce, separation period requirements, child support enforcement