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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 28, No. 4, pp.377-388
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2015
Received 10 Apr 2015 Revised 17 Jun 2015 Accepted 10 Nov 2015

The Price of Adultery: Evidence from Korean Judicial Decisions

Jeungil Oh ; Minsoo Park
Associate Professor, Department of Public Administration, Kyungpook National University, 80 Daehak-ro, Buk-gu, Daegu, 702-701, South Korea, Tel: 82-53-950-5476, Fax: 82-53-950-5488 jo31@knu.ac.kr
Corresponding author, Associate Professor, Department of Economics, Sungkyunkwan University, 25-2 Sungkyunkwan-ro, Jongno-gu, Seoul, 110-745, South Korea, Tel: 82-2-760-0427, Fax: 82-2-760-0946 minsoopark@skku.edu

JEL Classification: J12, K42

Abstract

This study examines the determinants of compensation for pain and suffering (CPS) by using data extracted from divorce proceedings decisions of South Korean judges. Estimation results derived from the Heckman model indicate that adultery is responsible for a $4,120 increase in CPS, which is approximately 14% of the average. Korean judges attempt to deter adultery by imposing large CPS on adulterous spouses. Another finding also indicates that women receive more CPS than men by $5,837. Korean judges seem to consider that the mental suffering of women during marital breakups is greater than that of men. Additionally, a $1 million growth in a defendant's wealth increases CPS by only $3,800. Therefore, the defendant's ability to pay CPS is not a significant factor in assigning CPS value. Finally, CPS is unrelated to the division rate of marital property, which implies that Korean judges decide separately on the value of CPS and the division rates of marital property. Judges do not use their discretion to balance the two decisions during divorce proceedings.

Keywords:

Divorce, Adultery, Compensation for pain and suffering, Judicial decisions

Acknowledgments

The authors thank Nuno Garoupa, Fernando Gomez, Iljoong Kim, Dongjin Lee, Bernd Schaefer, Joanna Shepherd, and other seminar participants at the 2013 KLEA International Conference on Law and Economics for their helpful discussion. The comments and advice of the editor and two referees are also greatly appreciated. This work is supported by a grant from the National Research Foundation of Korea, funded by the Korean Government (NRF-2014S1A5A2A01015788).

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