We estimate the effect of divorce legalization on the long-term well-being of
children. Our identification strategy relies on exploiting the different timing of divorce
legalization across European countries. Using European Community Household Panel
data, we compare the adult outcomes of cohorts who were raised in an environment
where divorce was banned with cohorts raised after divorce was legalized in the same
country. We also have control countries where all cohorts were exposed (or not
exposed) ...
We estimate the effect of divorce legalization on the long-term well-being of
children. Our identification strategy relies on exploiting the different timing of divorce
legalization across European countries. Using European Community Household Panel
data, we compare the adult outcomes of cohorts who were raised in an environment
where divorce was banned with cohorts raised after divorce was legalized in the same
country. We also have control countries where all cohorts were exposed (or not
exposed) to divorce as children, thus leading to a difference-in-differences approach. We
find that women who grew up under legal divorce have lower earnings and income as
well as worse health as adults compared with women who grew up under illegal divorce.
These effects are not found for men. We find no effects of divorce legalization on
children s family formation or dissolution patterns.
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