Death and divorce: The long-term consequences of parental loss on
adolescents
by Miles Corak
and Andrew Heisz
Business and Labour Market Analysis Division
Analytical
Studies Branch research paper series, No. 135
Two quasi-experiments are
used to estimate the impact of parental divorce on the adult incomes and labour
market behaviour of adolescents, as well as on their use of social programs, and
their marital/fertility behaviour. These involve the use of individuals experiencing
the death of a parent, and legislative changes to the Canadian divorce law in
1986.
Parental loss by death is assumed to be exogenous; the experiences
of children with a bereaved background offering a benchmark to assess the endogeneity
of parental loss through divorce. Differences between individuals with divorced
parents and those from intact and bereaved families significantly overstate the
impact of divorce across a broad range of outcomes. When background characteristics
are controlled for-most notably the income and labour market activity of parents
in the years leading up to the divorce-parental divorce seems to influence the
marital and fertility decisions of children, but not their labour market outcomes.
Adolescents whose parents divorced tend to put off marriage, and once married
suffer a greater likelihood of marital instability, but their earnings and incomes
are not on average much different from others.
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