Anna Zhu - The Effect of Changing Financial Incentives on Repartnering

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FBE Seminar Room 3.15
Level 3, FBE Building
111 Barry St, Carlton

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Jan Kabátek

j.kabatek@unimelb.edu.au

Melbourne Institute Brown Bag

Title: The Effect of Changing Financial Incentives on Repartnering

Abstract: This paper 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. Reconciliation with a new partner drives this result. Complementary analysis of an annual panel survey demonstrates that repartnering impacts are also present over the six years post-separation. Together, these 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.

Presenter: Dr Anna Zhu, University of Melbourne

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