The Effect of Changing Financial Incentives on Repartnering*

Author:

Fisher Hayley1,Zhu Anna2

Affiliation:

1. The University of Sydney, ARC Centre of Excellence for Children and Families over the Life Course, and Institute for the Study of Labor (IZA)

2. Royal Melbourne Institute of Technology, ARC Centre of Excellence for Children and Families over the Life Course, and Institute for the Study of Labor (IZA)

Abstract

AbstractThis article examines how a reduction in the financial resources available to lone parents affects repartnering. We exploit an Australian natural experiment that reduced the financial resources available to a subset of separating parents. Using biweekly administrative data capturing separations occurring among low- and middle- income couples, we show that the policy reform significantly increased the speed of repartnering for affected separating mothers. The results demonstrate that one way that lone mothers respond to a reduction in financial resources available at the time of relationship breakdown is by repartnering more quickly.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

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