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Stable Income, Stable Family

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  • Lindo, Jason M.

    (Georgia Institute of Technology)

  • Regmi, Krishna

    (Florida Gulf Coast University)

  • Swensen, Isaac D.

    (Montana State University)

Abstract

We document the effect of unemployment insurance generosity on divorce and fertility using an identification strategy that leverages state-level changes in maximum benefits over time and comparisons across workers who have been laid off and those that have not been laid off. The results indicate that higher maximum benefit levels mitigate the effects of layoffs. In particular, they mitigate increases in divorce associated with men's layoffs; increases in separations associated with women's layoffs; reductions in fertility associated with men's layoffs; and increases in fertility associated with women's layoffs.

Suggested Citation

  • Lindo, Jason M. & Regmi, Krishna & Swensen, Isaac D., 2022. "Stable Income, Stable Family," IZA Discussion Papers 15267, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15267
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    More about this item

    Keywords

    unemployment insurance; job loss; marriage; divorce; fertility; gender; family;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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