The Relation between Divorce and Wealth
Despite of the particular importance of wealth as a measure of economic well-being and the various functions of wealth, its distribution on the individual level as well as the reasons for inequality in wealth holdings in Germany have not been fully explored. Marital splits constitute a potential shock in relation to wealth: divorce is likely to reduce wealth holdings directly via court and lawyer fees and family status correlates with the determinants of wealth like income or consumption. To identify the relation between divorce and wealth in Germany, this study employs wealth data on the individual level provided by the German Socio-Economic Panel (SOEP) which also collects (retrospective) information on martial histories. To account for the reversed causality between divorce and wealth, conditional difference-in-differences matching methods are applied. Empirical results indicate that wealth and divorce are negatively related. However, the analysis provides some evidence that the effects observed are not actually causal ? that divorce itself may not be considered to lead to a reduction of individual wealth holdings and hence to a reduction in economic well-being.
Year of publication: |
2011
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Authors: | Fr??dorf, Anna |
Publisher: |
Universit?tsbibliothek Bamberg / Fakult?t Sozial- und Wirtschaftswissenschaften. Fakult?t Sozial- und Wirtschaftswissenschaften |
Subject: | Deutschland | Ehescheidung | Verm?gensentwicklung | Online-Publikation | Verm?gensverteilung | Scheidung | Familienstands-Biografien | Conditional Propensity Score Matching | SOEP | Sozio?konomisches Panel | Kausalanalyse | Wealth | Divorce | Marital Histories | German Socio-Economic Panel Study |
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