Paper #986

Title:

The effect of divorce laws on divorce rates in Europe

Authors:

Libertad González Luna and Tarja K. Viitanen

Date:

October 2006

Abstract:

This paper analyzes a panel of 18 European countries spanning from 1950 to 2003 to examine the extent to which the legal reforms leading to “easier divorce” that took place during the second half of the 20th century have contributed to the increase in divorce rates across Europe. We use a quasi-experimental set-up and exploit the different timing of the reforms in divorce laws across countries. We account for unobserved country-specific factors by introducing country fixed effects, and we include country-specific trends to control for time-varying factors at the country level that may be correlated with divorce rates and divorce laws, such as changing social norms or slow moving demographic trends. We find that the reforms were followed by significant increases in divorce rates. Overall, we estimate that the introduction of no-fault, unilateral divorce increased the divorce rate by about 1, a sizeable effect given the average rate of 4.2 divorces per 1,000 married people in 2002.

Keywords:

Divorce rates, legislation

JEL codes:

J12, J18, K3

Area of Research:

Labour, Public, Development and Health Economics

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