Article

Effects of the Joint Custody Law in Italy

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Abstract

We study the effect of a 2006 reform to Italian family law that made joint custody the default for separating couples. The reform boosted joint legal custody by about 75 percentage points. Our research design uses difference‐in‐differences to estimate reform effects on the likelihood of a contested settlement, length of trial, and transfers between separating parents. The analysis is based on Italian individual‐level administrative data, which cover the entire population. The joint custody default appears to have increased dispute rates and length of trial markedly, without affecting transfers. There is no evidence that mothers buy custody rights back through reduced support. Our findings are consistent with the excessive discretion given to judges on some aspects of law implementation, which resulted in a partial application of the reform.

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... A body of research has examined the effects of shared placement and generally found positive impacts on children and parents across many domains (for reviews, see Bauserman, 2012;Braver & Lamb, 2018;Braver & Votruba, 2018;Nielsen, 2018;Steinbach, 2019). The smaller literature on shared decision-making has found it to be related to increased father-child visitation (Gunnoe & Braver, 2001;Seltzer, 1998), fewer child adjustment problems (Gunnoe & Braver, 2001), and more child support (e.g., Chen & Meyer, 2017), although some have found little or no relationship with various outcomes once other characteristics are controlled (e.g., Albiston et al., 1990;de Blasio & Vuri, 2019;Seltzer, 1998). However, the research on shared placement and shared decision-making has not examined these concepts simultaneously. ...
... In Europe Nordic countries were forerunners in developing new strategies to encourage this form of shared parenting (Friðriksdóttir, 2014). Shared decision-making became legally favored in Sweden and the Netherlands in 1998 (Schiratzki, 1999;Spruijt & Duindam, 2009) and became the default arrangement in Belgium andItaly in 2006 (de Blasio &Vuri, 2019;Sodermans et al., 2013). In some countries, decision-making and placement can be separated. ...
... Parents who were not married lagged behind in this trend, but by the mid-2000s, 70% of nonmarital couples coming to family court in Wisconsin were awarded shared decision-making. Similar patterns can be seen in some countries in Europe (de Blasio & Vuri, 2019). For example, the rate of awarding sole decision-making to the mother in Italy decreased from 83% for separations in the early 2000s to 22% after 2006 (after a change to family law) (de Blasio & Vuri, 2019). ...
... There have been few studies that address these questions quantitatively by examining litigation patterns before and after a legal change. Some notable exceptions include research on the effect of changes in child custody laws on the number family law cases and the issues involved in them in the states of Oregon [223] and Colorado [224] and in Italy [225], and the effect of changes to child protection agency intervention thresholds on numbers of child welfare cases in Ontario [226]. 1 The general scarcity of such examples and their limited scope highlights the urgent need for further quantitative studies. One way to fill this fundamental knowledge gap is to use data sources that give a broad, system-wide view of family litigation patterns, while also possessing a level of detail high enough that it allows one to probe (to some degree) beyond surface-level correlations between legal changes and litigation frequencies. ...
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When a firing litigation is taken to court, only the characteristics of the employee's misconduct should be relevant for the judge's decision. Using detailed data from an Italian bank and aggregate macro data, this paper shows that, instead, local labor market conditions influence the court's decision: The same misconduct episode may be considered sufficient for firing in a tight labor market but insufficient otherwise. We reach this conclusion after taking carefully into consideration the non-random selection of firing litigations for trial. Although these results refer to the specific situation considered, they raise more general issues. For macroeconomists they suggest that higher unemployment rates may increase firing costs via the effect on courts’ decision criteria; thus, the real extent of firing rigidities cannot be assessed without considering the role of courts. For labor law scholars, these findings are important because, following traditional principles, the law should be applied in the same way for all citizens and over the entire national territory.
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Research on child custody primarily focuses on the well-being of children following divorce. We extend this literature by examining how the prospect of joint child custody affects within-marriage investment in children through changes in household bargaining power. Variation in the timing of joint-custody reforms across states provides a natural-experiment framework with which to examine within-marriage investment in children. The probability of children's private school attendance declines by 12% in states that adopt joint-custody laws. We also find evidence linking joint-custody reform to higher rates of labor force participation for married mothers, which may indicate less time devoted household production.
Article
The most recent research reveals a negative impact of divorce on children's welfare. In this paper we show that joint custody may reduce this negative impact, allowing both parents after divorce to participate in decisions regarding their children by having opportunities to share time and other resources with them. Using the US NLS, we test whether non-residential parents with joint custody are more likely to voluntarily transfer resources to the children, in addition to the child support ordered by the court. The results indicate that there is an important statistical relationship between joint custody and both voluntary transfers and transfers ordered by the court after taking into account a number of couple-specific factors. We attempt to provide a framework within which these results can be coherently interpreted.
Article
Most papers that employ Differences-in-Differences estimation (DD) use many years of data and focus on serially correlated outcomes but ignore that the resulting standard errors are inconsistent. To illustrate the severity of this issue, we randomly generate placebo laws in state-level data on female wages from the Current Population Survey. For each law, we use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate. These conventional DD standard errors severely understate the standard deviation of the estimators: we find an "effect" significant at the 5 percent level for up to 45 percent of the placebo interventions. We use Monte Carlo simulations to investigate how well existing methods help solve this problem. Econometric corrections that place a specific parametric form on the time-series process do not perform well. Bootstrap (taking into account the autocorrelation of the data) works well when the number of states is large enough. Two corrections based on asymptotic approximation of the variance-covariance matrix work well for moderate numbers of states and one correction that collapses the time series information into a "pre"-and "post"-period and explicitly takes into account the effective sample size works well even for small numbers of states.
Article
The social norm of unemployment suggests that aggregate unemployment reduces the well-being of the employed, but has a far smaller effect on the unemployed. We use German panel data to reproduce this standard result, but then suggest that the appropriate distinction may not be between employment and unemployment, but rather between higher and lower levels of labour-market security, at least for men. Men with good job prospects, both employed and unemployed, are strongly negatively affected by regional unemployment. However, insecure employed men and poor-prospect unemployed men are less negatively, or even positively, affected. There is however no clear relationship for women. We analyse labour-market inequality and unemployment hysteresis in the light of our results.
Article
We develop estimation methods that use the amount of selection on the observables in a model as a guide to the amount of selection on the unobservables. We show that if the observed variables are a random subset of a large number of factors that influence the endogenous variable and the outcome of interest, then the relationship between the index of observables that determines the endogenous variable and the index that determines the outcome will be the same as the relationship between the indices of unobservables that determine the two variables. In some circumstances this fact may be used to identify the effect of the endogenous variable. We also propose an informal way to assess selectivity bias based on measuring the ratio of selection on unobservables to selection on observables that would be required if one is to attribute the entire effect of the endogenous variable to selection bias. We use our methods to estimate the effect of attending a Catholic high school on a variety of outcomes. Our main conclusion is that Catholic high schools substantially increase the probability of graduating from high school and, more tentatively, college attendance. We do not find much evidence for an effect on test scores.
Article
The failure of many divorced fathers to comply with court-mandated child support awards has been identified as a major reason why a growing number of children live in poverty in female-headed households. This paper presents a model that seeks to explain why so many divorced fathers allow their children's welfare to suffer as a consequence of divorce. The point of departure is the recognition that children are collective consumption goods from the point of view of the father and mother. Within marriage, proximity and altruism serve to overcome the "free-rider" problem associated with the provision of public goods. However, on divorce the noncustodial parent suffers a loss of control over the allocative decisions of the custodial parent and it is not feasible for the couple to achieve a Pareto-optimal allocation of their joint resources. A model of optimal marriage contracts is constructed in which a couple decides on the allocation of resources within marriage and on the terms of a settlement in the event ...
Article
Following legal realists, we model the causes and consequences of trial judges exercising discretion in finding facts in a trial. We identify two motivations for the exercise of such discretion: judicial policy preferences and judges' aversion to reversal on appeal when the law is unsettled. In the latter case, judges exercising fact discretion find the facts that fit the settled precedents, even when they have no policy preferences. In a standard model of a tort, judicial fact discretion leads to setting of damages unpredictable from true facts of the case but predictable from knowledge of judicial preferences, distorts the number and severity of accidents, and generates welfare losses. It also encourages litigants to take extreme positions in court and raises the incidence of litigation relative to settlement, especially in new and complex disputes for which the law is unsettled. (c) 2008 by The University of Chicago. All rights reserved..
Article
The neo-classical theory of demand applies to individuals yet in empirical work it is usually taken as valid for households with many members (or even for whole economies!). This paper explores what the theory of individual members of the household resolve conflicts. All we assume is that however decisions are made, outcomes are efficient. We refer to this as the collective setting. The main result we derive shows that in the collective setting household demands must satisfy a symmetry and rank condition on the slutsky matrix. This condition includes the usualsymmetry condition as a special case. We also present some further results on the effects on demands of variables that do not modify oreferences but that do affect how decisions are made. The prime candidates for such variables are the incomes of the individual in the household. We apply our theory to a series of surveys of household expenditures from Canada. We use a flexible quadratic log demand system as out maintained model. The tests of the usual symmetry conditions are rejected for two person households but not for one person households. Moreover we show that the estimates for the two person housholds, assmuing a single utility function for the household, display problems that are absent for single person households. We then test for our collective setting conditions on the couples data. None of the collective setting restrictions are rejected. We conclude that the collective setting is a plausible and tractable next step to take in the analysis of household demand and labour supply behaviour.
2012)I bilanci delle famiglie italiane nel 2011 Supplementi al Bollettino statistico Roma
  • Bank Of Italy
La giustizia civile in Italia: i divari territoriali,' Banca d'Italia, Questioni di economia e finanza
  • A Carmignani
  • S Giacomelli
Carmignani A. and Giacomelli S. (2009) 'La giustizia civile in Italia: i divari territoriali,' Banca d'Italia, Questioni di economia e finanza, n. 40
La ricchezza delle famiglie italiane 2010 Supplementi al Bollettino statisticon
  • Bank Of Italy
Bargaining at Divorce: The Allocation of Custody
  • M. Halla
  • C. Hölzl
Shared Parenting in the Netherlands
  • P. Tromp