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No-Fault Divorce in Canada: Its Cause and Effect

What It Is All About No-fault divorce presumably originated from “inefficient marriages” in 1940-60sAuthor argues this new legislation serves efficiencyFirst ever study on Canadian data (Census)Divorce rates increased since introductionThree segments: 1) Efficient

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Слайд 1No-Fault Divorce in Canada: Its Cause and Effect
Allen, Douglas W,

PhD
Simon Fraser University

No-Fault Divorce in Canada: Its Cause and EffectAllen, Douglas W, PhDSimon Fraser University

Слайд 2What It Is All About
No-fault divorce presumably originated from “inefficient

marriages” in 1940-60s
Author argues this new legislation serves efficiency
First ever

study on Canadian data (Census)
Divorce rates increased since introduction
Three segments:
1) Efficient vs Inefficient Marriages
2) Economic theories of divorce
3) Hypothesis Testing (Math)


What It Is All About	No-fault divorce presumably originated from “inefficient marriages” in 1940-60sAuthor argues this new legislation

Слайд 3“Marriage Contract”
Inefficient marriages  transaction costs
No-fault divorce  good marriages

gone bust
Fault divorce  bad marriages kept afloat
Q: What caused

a rise in “inefficient marriages”?
A: Several theories:
contraception
feminism, flight from traditional values.
labor force participation starting in WWII (Allen)

“Marriage Contract”Inefficient marriages  transaction costsNo-fault divorce  good marriages gone bustFault divorce  bad marriages kept

Слайд 4Economic Theories
More women in labor force doing more men’s jobs
Variance

in labor type among women
Variance in expectations for future marital

partner
Low gains + expectation shock = divorce

Economic TheoriesMore women in labor force doing more men’s jobsVariance in labor type among womenVariance in expectations

Слайд 5Hypothesis Testing
Labor force participation is the tip of the iceberg
Real

issue = mistakes in partner selection
No-fault divorce is a result,

not a catalyst
Two tests:
Relationship b/w no fault divorce and participation (Duration model: )
*Data from StatCan: 1984 Family History Survey
Regression to corroborate results from 1)
*Data from Census

Hypothesis TestingLabor force participation is the tip of the icebergReal issue = mistakes in partner selectionNo-fault divorce

Слайд 6Conclusion
The introduction of no-fault divorce is a response
By-product: efficient and

inefficient divorce
Division into efficient and inefficient explains paradox in judgment

by empirical vs. observation
ConclusionThe introduction of no-fault divorce is a responseBy-product: efficient and inefficient divorceDivision into efficient and inefficient explains

Слайд 7Discussion Questions 1/3
1. No-fault Divorce was first introduced in California in 1969 but officially

became an option in Canada only in 1986. What are some

factors that have contributed to the delay in your opinion?

2. The change in legislation, according to Allen, not only "helped" dissolve inefficient marriages but also induced inefficient divorces (that is, ex-post total wealth is lower than in the marriage union). What other transaction costs can you think of?

Discussion Questions 1/31. No-fault Divorce was first introduced in California in 1969 but officially became an option in Canada only in 1986.

Слайд 8Discussion Questions 2/3
3. Do you think the no-fault divorce law encouraged doubting

spouses to divorce or was is rather a liberator for people

that realized they had made a mistake? In your opinion, has this law contributed to a rise in inconsiderate marriage unions nowadays, since spouses bear a lot less risk to be "stuck" with a "wrong person"?

4. In no-fault divorce environment there is always a chance that a marriage that should not break up will do so, whereas in a fault divorce case the opposite is true. Do you think that the proportion of good marriages broken up due to this legislation has become statistically significant over the years? Why or why not?

Discussion Questions 2/33. Do you think the no-fault divorce law encouraged doubting spouses to divorce or was is rather

Слайд 9Discussion Questions 3/3
5. Theoretically, if you were married, how would

you decided on the factors determining whether your marriage turned

out efficient of inefficient? What are the main elements, in your opinion? 

Discussion Questions 3/35. Theoretically, if you were married, how would you decided on the factors determining whether

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