Social and Health Outcomes around Divorce: Evidence from New Zealand

How does family breakdown and divorce affect spouses and their children? We provide new evidence using a matched difference-in-differences design in rich administrative data from New Zealand. While most outcomes remain stable prior to separation, parents' mental health deteriorates in the lead-up. At separation, men's employment falls while women's rises, and women become much more likely to receive government benefits. Men temporarily double their criminal offending; about a third of the increase is domestic disputes. Both parents become more likely to be the victim of non-domestic crime as well. As for mental health, parents become more anxious and depressed at separation, and these remain elevated well after the couple has parted. Their children, too, face increased risks after separation: anxiety, depression, school absenteeism, and crime victimization all rise.