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AER - December 2006

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American Economic Review

Vol. 96, No. 5, December 2006


Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results
Justin Wolfers

Article Citation
Wolfers, Justin. 2006. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results." American Economic Review, 96(5): 1802–1820.
DOI:10.1257/aer.96.5.1802

Abstract
Applying the Coase Theorem to marital bargaining suggests that shifting from consent to unilateral divorce laws will not affect divorce rates. I show that existing evidence suggesting large effects of divorce laws on divorce rates reflect a failure to explicitly model the dynamic response of divorce rates to a shock to the legal regime. When accounting for these dynamics, I find that unilateral divorce spiked following the adoption of unilateral divorce laws, but that this rise largely reversed itself within a decade. Overall, these changes in family law explain very little of the rise in divorce over the past half-century. (JEL C78, J12)

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Authors
Wolfers, Justin