The economic consequences of divorce in six OECD countries
This report presents a cross-national comparison of the short- and medium-term economic effects of divorce.
Estimates for men and women are derived from longitudinal data from Australia, Germany, Korea, Switzerland, the United Kingdom, and the United States.
It details how the main sources of income for women change following divorce, and the relative contribution of these sources. The findings show that though divorce has a negative effect on the equivalised household incomes of women in all of these countries, the extent and duration of these negative effects differ markedly between the nations.
The report concludes by briefly considering the possible causes of these differences.
In all of the countries studied divorce had, on average, negative effects on the equivalised household incomes of women. However, the extent and duration of the negative effects of divorce differed markedly between countries.
In all of the study countries, the effect of divorce on the equivalised household income of men was smaller than the effect on women in terms of post-separation income relative to pre-separation income and the income it would have been had they remained married.
Although, using the available data, it is not possible to definitely explain the differences between countries, the analysis presented in this paper provides some insights.
The average economic effects of divorce, particularly for women, are heavily influenced by the social security, labour market, family model and family law systems of each country.
While the social security system and institutional arrangements such as child support and spousal maintenance do influence women’s post-divorce economic outcomes, women’s labour market earnings and the extent to which re-partnering occurs represents the most important force explaining cross-country differences.
Authors and Acknowledgements
Professor David de Vaus is a Senior Research Fellow at the Australian Institute of Family Studies and Emeritus Professor in the Faculty of Social and Behavioural Sciences, University of Queensland. Professor Matthew Gray is Director, Centre for Aboriginal Economic Policy Research, and Research Director, College of Arts and Social Sciences, at the Australian National University. Dr Lixia Qu is a Senior Research Fellow at the Australian Institute of Family Studies. David Stanton is a Visiting Fellow, Policy and Governance, Crawford School of Public Policy, at the Australian National University.
Previous versions of this report were presented at the 2013 Foundation for International Studies on Social Security Conference, Sigtuna, Sweden, the 2013 International Child Support Conference held at the Australian National University, Canberra and the 2014 Australian Institute of Family Studies Conference, Melbourne. The authors are grateful to participants at these conferences for helpful comments on the research.
de Vaus, D., Gray, M., Qu, L., & Stanton, D. (2015). The economic consequences of divorce in six OECD countries (Research Report No. 31). Melbourne: Australian Institute of Family Studies.
This report provides some of the first estimates of the financial consequences of divorce for Australians aged 55 to 74 years using HILDA survey da
The data presented are drawn from the 1977 Australian Divorce Transition Project, a random national telephone survey of divorced Australians
Research findings and conclusions and details suggestions for short- and long-term strategies; a summary report outlines the main issues.
The AIFS submission to the Joint Select Committee Inquiry on Certain Family Law Issues concerns the Child Support Scheme (CSS).