This study challenges the traditional narrative that divorce adversely affects women's earnings, particularly focusing on female CEOs. We propose that, for women who effectively navigate social constraints, divorce can actually lead to increased earnings. Grounded in evolutionary psychology, our research suggests that the absence of a mate prompts women, unlike men, to intensify their resource acquisition efforts. This is particularly evident in divorced female CEOs, who, free from certain marital constraints, are able to allocate more cognitive resources to their professional roles, resulting in a 'divorce premium' in earnings compared to their married counterparts. Our analysis, utilizing a matched sample of female and male CEOs, reveals this divorce premium is exclusive to female CEOs. Notably, the premium escalates with the duration of being divorced, although it diminishes in the presence of children or if the CEOs remarry. These findings illuminate the intricate ways in which gender differences in earnings are influenced, highlighting that while social constraints tend to reduce women's earnings post-divorce, evolutionary adaptations appear to limit their earnings during marriage. The absence of a similar pattern among male CEOs underscores a gender-specific impact of marital status on professional preferences and financial outcomes.
