China has witnessed a rapid expansion in Internet penetration in recent years, with profound impacts on people's family life and marital relationships. This paper aims to examine the causal effects and functionary of information access through Internet on marital stability. This paper identifies a robust association between Internet use and increasing divorce rates in China by using nationally representative, individual-level survey data and province-level aggregate data. Various regression techniques and specifications demonstrated the statistical and economic significance of the association. Given the ever-expanding role of the Internet and the serious consequences of divorce on families and society, it is imperative that we study the underlying mechanisms as the first step toward socially responsible policymaking. Our analysis revealed a significant mediating effect of the self-reported importance of Internet information acquisition, the frequency of chatting with online friends, the frequency of meeting with online friends, and the intensity of Internet use. These findings are consistent with the theory that the increase in divorce decisions is due to better information access and is, therefore, rational and that policies such as a mandatory cooling-off period for divorce may lower societal welfare. We also conducted a series of heterogeneity analyses that showed, among other findings, that the Internet effect is stronger for women.
Keywords: Internet penetration; Internet use; divorce; information access; mandatory cooling-off period.