The Risk of Divorce and Household Saving Behavior

  title={The Risk of Divorce and Household Saving Behavior},
  author={Libertad Gonz{\'a}lez and Berkay {\"O}zcan},
We analyze the impact of an increase in the risk o f divorce on the saving behaviour of married couples. From a theoretical pe rs ctive, the expected sign of the effect is ambiguous. We take advantage of the legal ization of divorce in Ireland in 1996 as an exogenous increase in the likelihood of marit al d ssolution. We analyze the saving behaviour over time of couples who were married bef ore the law was passed. We propose a difference-in-differences approach where we use a s comparison… CONTINUE READING