Female Earnings and Divorce Rates: Some Australian Evidence
AbstractThe purpose of this article is to examine whether female earnings have influenced divorce rates in Australia, using state-level data for the past four decades. Following a recent study by Ressler and Waters (2000), which concludes from comparable US data that female earnings and divorce rates may be jointly endogenous, initial testing is performed to identify whether female earnings can be treated as exogenous. A Hausman specification error test finds no evidence of a simultaneous relationship in the Australian data, in contrast to the findings of Ressler and Waters. The test result supports the hypothesis that other underlying factors affect female earnings, of which higher divorce rates are merely another symptom. A divorce rate equation is estimated. In accordance with much of the literature, the rise in female earnings over the past four decades is found to have increased Australian divorce rates. Copyright 2004 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.
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Bibliographic InfoArticle provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.
Volume (Year): 37 (2004)
Issue (Month): 2 (06)
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Postal: The University of Melbourne, Victoria 3010
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Other versions of this item:
- Bruce Phillips & William Griffiths, 2002. "Female Earnings And Divorce Rates:Some Australian Evidence," Department of Economics - Working Papers Series 850, The University of Melbourne.
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- Peters, H Elizabeth, 1986. "Marriage and Divorce: Informational Constraints and Private Contracting," American Economic Review, American Economic Association, vol. 76(3), pages 437-54, June.
- Rand Ressler & Melissa Waters, 2000. "Female earnings and the divorce rate: a simultaneous equations model," Applied Economics, Taylor and Francis Journals, vol. 32(14), pages 1889-1898.
- Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-69, June.
- Sander, William, 1985. "Women, Work, and Divorce," American Economic Review, American Economic Association, vol. 75(3), pages 519-23, June.
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