With joint taxation, secondary earners (mostly women) see an increase in marginal tax rate after marriage. The German tax code creates A LOT of variation in tax rate changes. We use this to estimate the effect of tax incentives. Result: they explain 30% of the marriage gap. 7/

We also study incentives from divorce law. A 2008 reform cut post-divorce alimony eligibility to increase female labor supply. The reform implies a sizeable drop in lifetime earnings given the risk of divorce, but we find no effect on the marriage earnings gap. 8/