Watching video "No-Fault Divorce and Rent-Seeking"

Lecturer: Schoors Koen
Themes: Economics   English   seminar   CInSt   2010  
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Belgium recently introduced a no-fault divorce trajectory, next to the existing consensual trajectory. We analyse the determinants of divorce trajectory choice and of the resulting post-divorce transfers. The no-fault trajectory is more likely, if spouses are more specialised in either domestic or labour market production. This is consistent with a theory of divorce as rent extraction. Child support payments depend neither on the divorce trajectory nor on alimony transfers or relative incomes, but are driven by the payer's wage and the child(ren)'s residence. Partner alimony transfers are higher for no-fault unilateral divorces with pronounced self sacrifice.

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