Fernández Kranz, Daniel

Person:
Fernández Kranz, Daniel

First Name

Daniel

Last Name

Fernández Kranz

Affiliation

IE University

School

IE Business School

Department

Economics

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Now showing 1 - 10 of 12

The Perfect Storm: Graduating during a Recession in a Segmented Labor Market
(Sage, 2017-06-09) Fernández Kranz, Daniel; Rodríguez Planas, Núria; https://ror.org/02jjdwm75
Using Spanish Social Security data merged with Labor Force Survey data, this article analyzes the effects of entry labor market conditions on workers’ careers two to three decades after graduating in Spain, a country well known for its highly segmented labor market and rigid labor market institutions. In contrast to more flexible labor markets such as in the United States or Canada, the authors find that following a recession the annual earnings losses of individuals without a university degree are greater and more persistent than those of college graduates. For workers without a college degree, the effect is driven by a lower likelihood of employment. For college graduates, the negative impact on earnings is driven by both a higher probability of non-employment and employment in jobs with fixed-term contracts. Although a negative shock increases mobility of college graduates across firms and industries, no earnings recovery occurs for the individual, just secondary labor market job churning. Results are consistent with the tight regulations of the Spanish labor market, such as binding minimum wages and downward wage rigidity caused by collective bargaining agreements.
Can economic incentives for joint custody harm children of divorced parents? Evidence from state variation in child support laws
(Elsevier, 2021-09) Fernández Kranz, Daniel; Roff, Jennifer; Sun, Hugette; https://ror.org/02jjdwm75
US state laws vary widely in the treatment of child support under joint custody. While some states require no child support in joint custody cases, other states require fathers with joint custody to pay the same amount as if they had no custody. The economic incentives generated by those custody laws can affect family decisions and the wellbeing of children of divorced parents, both under joint and sole custody. Merging child data from the SIPP with state child support guidelines, we find that economic incentives for joint custody have negative effects on the human capital development and health of children of divorced parents. Custody data together with parental characteristics and time use data suggest that economic incentives for joint custody may limit children's time spent with relatively high-quality mothers, as fathers pursue joint custody in response to the policy. We do not find an effect of economic incentives for joint custody on the probability of divorce and on the wellbeing of children in intact families. Our results are robust to specification changes, and the negative effects of economic incentives for joint custody on the wellbeing of children tend to be larger for girls and for children aged 12 and under.
Too family friendly? The consequences of parent part-time working rights
(Elsevier, 2021-05) Fernández Kranz, Daniel; Rodríguez Planas, Núria; https://ror.org/02jjdwm75
We use a difference-in-differences model with individual fixed effects to evaluate a 1999 Spanish law granting employment protection to workers with children younger than 6 who had asked for a shorter workweek due to family responsibilities. Our analysis shows that well-intended policies can potentially backfire and aggravate labor market inequalities between men and women, since there is a very gendered take-up, with only women typically requesting part-time work. After the law was enacted, employers were 49% less likely to hire women of childbearing age, 40% more likely to separate from them, and 37% less likely to promote them to permanent contracts, increasing female non-employment by 4% to 8% relative to men of similar age. The results are similar using older women unaffected by the law as a comparison group. Moreover, the law penalized all women of childbearing age, even those who did not have children. These effects were largest in low-skill jobs, at firms with less than 10 employees, and in industries with few part-time workers. These findings are robust to several sensitivity analyses and placebo tests.
Child Custody Laws and Household Outcomes
(Springer Nature, 2022-09-06) Fernández Kranz, Daniel; Roff, Jennifer; Zimmermann, Klaus; https://ror.org/02jjdwm75
Shared parenting or joint physical custody is an increasingly common phenomenon in many Western countries. While one strand of the economics literature on this topic has taken a theoretical approach, examining the efficiency and distributional effects of joint custody within marriage, most of the literature has focused on identifying the effects of shared parenting empirically. However, an empirical analysis of shared parenting and its consequences is difficult for multiple reasons, including selection in joint custody and data ambiguity in identifying “friendly” joint custody legal regimes. This Handbook chapter provides an overview of the legal treatment of shared parenting internationally and within the USA and discuss the theoretical and empirical literature on the effects of shared parenting on family outcomes. The chapter conclude with directions for future research.
The effect of alimony on married women’s laborsupply and fertility: Evidence from state-levelreforms
(Wiley, 2024-11-25) Fernández Kranz, Daniel; Roff, Jennifer; https://ror.org/02jjdwm75
Reforms that reduce spousal support after divorce are generally thought to reduce the bargaining power of alimony recipients as well as their incentives to participate in the traditional model of household specialization. Using the U.S. Time Use Survey and exploiting a series of recent reforms in several U.S. states that reduced the rights of eligible spouses, we find that wives surprised by the reforms reacted by increasing their labor supply, but the adjustment mechanism varied by educational group. While college educated wives' labor supply increased at the expense of time spent on housework and childcare, wives with less than a college degree sacrificed personal care and leisure time. Effects for men are generally smaller and not statistically significant. We also find a reduction in the rate of new births following the reforms, with the effect being much more pronounced in the case of women with a university education, suggesting that part of the difference in time use may be attributable to differences in preferences and the cost of children by educational levels. Since children are a marital public good, our results imply a decrease in marriage-specific investment. The estimated effects are robust to various sensitivity tests and are greater in couples with a high-income differential and therefore more exposed to changes in alimony laws.
The impact of equal parenting time laws on family outcomes and risky behavior by teenagers: evidence from Spain
(IE University, 2021-06-25) Nollenberger, Natalia ; Fernández Kranz, Daniel; https://ror.org/02jjdwm75
Due to legal reforms, equal parenting time (EPT) laws in Spain now apply to approximately 40% of all divorces, with likely implications for family outcomes and teenagers’ risky behavior. Consistent with theories of bargaining power within marriage, we find that EPT laws decrease contentious and wife-initiated divorces and increase the employment of mothers relative to fathers. An analysis of drug use and family relationships, among 165,000 teenagers, further shows that EPT laws significantly decrease risky behavior by teenagers, especially boys, who claim to have better relationships with their father, although more unclear norms for behavior. These results have some international implications, such as for the United States, where more than half of the states are considering whether to adopt EPT laws.
Intimate partner violence under forced cohabitation and economic stress: Evidence from the COVID-19 pandemic
(Elsevier, 2021-02) Arenas Arroyo, Esther; Fernández Kranz, Daniel; Nollenberger, Natalia; https://ror.org/02jjdwm75
With the COVID-19 outbreak imposing stay at home and social distancing policies, warnings about the impact of lockdown and its economic consequences on domestic violence have surged. This paper disentangles the effect of forced cohabitation and economic stress on intimate partner violence. Using an online survey data set, we find a 23% increase of intimate partner violence during the lockdown. Our results indicate that the impact of economic consequences is twice as large as the impact of lockdown. We also find large but statistically imprecise estimates of a large increase of domestic violence when the relative position of the man worsens, especially in contexts where that position was already being threatened. We view our results as consistent with the male backlash and emotional cue effects.
Bargaining under Threats: The Effect of Joint Custody Laws on Intimate Partner Violence
(2021-09) Fernández Kranz, Daniel; Nollenberger, Natalia ; Roff, Jennifer; https://ror.org/02jjdwm75
We study the effect of a policy change that exogenously shifted bargaining power from mothers to fathers on intimate partner violence. We exploit a quasi-natural experiment based on a series of reforms in Spain that shifted the custody decision from being unilaterally determined by the mother to a joint decision, barring evidence of violence. We find that the policy led to a large and significant decrease in intimate partner violence, with the largest effects among couples in which the mother was more likely to seek sole custody before the policy change.
Can't leave you now! Intimate partner violence under forced coexitence and economic uncertainty
(IE University, 2020-11-18) Arenas Arroyo, Esther; Fernández Kranz, Daniel; Nollenberger, Natalia; https://ror.org/02jjdwm75
With the COVID-19 outbreak imposing stay at home and social distancing policies, warnings about the impact of lockdown and its economic consequences on domestic violence has surged. This paper disentangles the effect of forced coexistence and economic stress on intimate partner violence. Using an online survey data set, we find a 23% increase of intimate partner violence during the lockdown. Our results indicate that the impact of economic consequences is twice as large as the impact of lockdown. We also find a large increase of domestic violence when the relative position of the man worsens, especially in contexts where that position was already being threatened. We view our results as consistent with the male backlash and emotional cue effects.
Commitments and the Marital Match: The Effect of Alimony Reform on Assortative Matching
(IZA, 2021-11) Fernández Kranz, Daniel; Roff, Jennifer; https://ror.org/02jjdwm75
This paper examines the effects of reforms that reduced alimony on matching in the marriage market. Recent literature indicates that divorce law changes which reduce commitment or income-sharing upon separation will lead to an increase in assortative matching, as women forgo specialization which may not be compensated upon divorce. Using state-level data on alimony reform that reduced the entitlements of eligible spouses and American Community Survey data on marriage and the characteristics of newlyweds, we find that alimony reform increased measures of spousal covariance in education. Our results indicate that correlation coefficients on spousal degree attainment consistently rise with alimony reform, and regression-based measures of assortative matching increase similarly. Moreover, we find the largest effects among those groups who might be more sensitive to the reform. Regression-based measures of assortative matching increase by over 10% among couples in which at least one partner had previously been married and by 9% among those couples who marry in states with less generous property division and child support which are often treated as substitutes for alimony in divorce settlements