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We study how different levels of protection upon separation affect the labour market behaviour of unmarried cohabiting partners. In Canada, unmarried cohabitation becomes a legal status after one year of relationship. Most provinces automatically expand couples' rights and responsibilities after several years of cohabitation: some provinces allow cohabiting partners to claim for alimony upon separation, while others consider cohabiting couples to be equal to married couples. Using cross-province variations in legal settings and minimum eligibility duration, we find that eligibility for a regime making cohabiting partners equal to married partners increases men's labour supply and decreases women's labour supply and earnings while eligibility for a regime allowing for post-separation transfers between ex-partners decreases women's earnings only. Our results show that eligibility affects within-household allocation of earnings and hours of work, and reinforces existing inequality. Our results contribute to the ongoing public debate regarding the legal recognition and level of protection that should be given to unmarried cohabiting partners.
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