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Divorce and Property Division Laws Shape Human Capital Investment

Author

Listed:
  • Peter Blair

    (Harvard Graduate School of Education)

  • Elijah Neilson

    (Southern Utah University)

Abstract
In theory, unilateral divorce laws alter the private incentive to invest in human capital by permitting either spouse to initiate the division of the marital assets. Using several causal research designs we show that both men and women are less likely to attain a bachelor’s degree in states with unilateral divorce laws—-especially individuals who were exposed to the laws when making educational choices and who live in states requiring an even split of assets upon divorce. Unilateral divorce laws do not distort human capital investment generically—but rather in contexts where the property division laws invite moral hazard.

Suggested Citation

  • Peter Blair & Elijah Neilson, 2023. "Divorce and Property Division Laws Shape Human Capital Investment," Working Papers 2023-020, Human Capital and Economic Opportunity Working Group.
    • Handle: RePEc:hka:wpaper:2023-020
    Note: MIP
    as

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    File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Blair_Neilson_2023_divorce-property-division-hum-cap.pdf
    File Function: First version, August 2023
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    unilateral divorce; property rights; racial differences; labor market distortions;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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