Literature Review
Student 's Name
Paper Citation: Johnson, William R. and Jonathan Skinner (1986) “Labor Supply and Martial Separation,” The
American Economic Review, 76(3) (June): 455-469.
[Note the Format of the Citation: Author Names (Year) "Paper Title," Journal Title, Volume(Number) (Month): page numbers. More examples of reference citation are at the end of this document.]
This paper examines the relationship between women 's labor supply and divorce. The authors find that women who divorce had increased their labor supply during the three years prior, raising questions as to the causeeffect relationship between women 's labor supply and marital dissolution. In other words, they try to disentangle the question of whether women 's increasing labor force participation contributes to increased divorce or whether women who anticipate divorce increase their labor force participation as a result of that anticipation. [Note: This first paragraph is an overview or abstract of the paper]
Johnson and Skinner (1986) analyzed data from the Michigan Panel Study of Income Dynamics (PSID), which allowed them to estimate predicted divorce probabilities based on actual divorce. They then used this predicted probability of divorce and actual divorce in estimates of female LFP, and though both variables had positive coefficients, they were statistically insignificant.
Johnson and Skinner (1986) included residence in a state with no-fault divorce legislation in their predicted labor supply equations. They concluded that living in a state with a no-fault divorce law has a negative impact on women’s labor supply. However, Johnson and Skinner’s (1986) analysis used PSID data from 1972, when only a few states had changed their divorce laws to no-fault; this created a small comparison group and a limited amount of time for the laws ' effects to occur.
Though Johnson and Skinner’s (1986) analysis suggested that no-fault
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