Unemployment, Splitting Up and Spousal Income Replacement
AbstractIn this study, the consequences of unemployment for a Swedish sample of couples are analyzed. The purpose is to estimate the possible income replacement that a spouse can provide. Unemployment can also affect the probability that the couples split up. Since not all couples remain in the analysis, a potential selection problem can occur. To deal with this problem, and also to take care of unobserved heterogeneity, a sample selection model for panel data is estimated. The results indicate that it is necessary to take into account the selection problem. A period in unemployment is found to be correlated with a higher female income only in the case of men who earned a fairly high income before becoming unemployed. Women who earned a fairly low income and were subject to a long period of unemployment are found to be compensated by a higher male income.
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Bibliographic InfoPaper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 651.
Length: 42 pages
Date of creation: 08 Apr 2005
Date of revision:
Contact details of provider:
Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
More information through EDIRC
unemployment; divorce; spousal response; sample selection; panel data;
Other versions of this item:
- William Nilsson, 2008. "Unemployment, Splitting up, and Spousal Income Replacement," LABOUR, CEIS, vol. 22(1), pages 73-106, 03.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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