Abstract
During recent decades women participate in large numbers in the labour market, but nevertheless significant gender differences in labour participation still exist. In case of marriage dissolution, women experience a disproportionate decline in income compared to men. To cope with this financial deterioration, women can employ certain strategies, of which labour is an important example. In this article we focus on the effect alimony and child support have on women’s labour supply after experiencing a divorce. According to labour economics and the eco¬ nomic need hypothesis, we expect a negative (income) effect from alimony on labour. Child support creates an income and a substitution effect, so the direction of the effect on labour is a priori unknown. Results based on data from ‘Divorce in Flanders’ show that the hypotheses are partially supported. The combination of alimony and child support does indeed decline women's labour supply after divorce. This implies an increased dependence upon the ex-spouse.
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