Labour and Public Policy Seminar: Hanno Foerster, University of Mannheim

Title: The Impact of Post-Marital Maintenance on Dynamic Choices and Welfare of Couples

2017.03.28 | Bodil Westermann Krog

Date Mon 24 Apr
Time 12:15 13:00
Location Fuglesangs Allé 4, 8210 Aarhus V, building 2621(B), room 04

Speaker: Hanno Foerster, University of Mannheim

Title: The Impact of Post-Marital Maintenance on Dynamic Choices and Welfare of Couples

Abstract: In many countries divorce law mandates post-marital maintenance payments to insure lower-earning spouses against the drop in financial resources upon divorce. This paper studies to what extent post-marital maintenance affects married and divorced couples' decisions and welfare. I estimate a dynamic model of family labor supply, savings and marital status and use it to analyze counterfactual policy scenarios in which the level and duration of post-marital maintenance are changed. Event studies based on German household survey data reveal strong patterns of household specialization around marriage and first childbirth, indicating an important role for post-marital maintenance. I target these patterns of household specialization in the structural estimation.

Organizer: Niels Skipper

Labour and Public Policy Seminars
14304 / i32