Mothers' postdivorce earnings in the context of welfare policy change

We examined in this study the implications of divorce for mothers' earnings, comparing the 1990s and the 2000s, and illuminating developments in welfare policy for single‐parent families over those two decades. After the welfare reform of 2003, the economic autonomy of single mothers, established through a combination of welfare state‐based benefits and paid labour, was delegitimised, with a turn toward the marketplace. Using a unique data set created for this research by merging Israeli census files for 1995–2008, annual administrative employment records from the National Insurance Institute and the Tax Authority, and data from the Civil Registry of Divorce, we found that most mothers tended to increase their income from paid labor following divorce. However, they did so significantly more prior to the welfare cuts than after the cuts. The results can inform policy discussions about how mothers' postdivorce earnings might be affected by welfare policy shifts.