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Relationship Stability: Evidence from Labor and Marriage Markets

Author

Listed:
  • Iris Kesternich

    (KU Leuven and University of Hamburg)

  • Bettina Siflinger

    (Tilburg University)

  • James P. Smith

    (Rose Li and Associates)

  • Franziska Valder

    (University of Copenhagen, Center of Economic Behavior and Inequality)

Abstract

Behavior in labor and marriage markets follows similar structures when it comes to commitment to long-term relationships. We argue that there is a joint social skill driving stability in both markets. Applying a grouped fixed-effect estimator on data from the Survey of Health, Ageing and Retirement in Europe, we identify types of individuals at risk of instability in both domains. We provide evidence on how economic preferences and personality are related to instability in both markets. We also show negative consequences of instability in terms of reduced life satisfaction and wealth late in life.

Suggested Citation

  • Iris Kesternich & Bettina Siflinger & James P. Smith & Franziska Valder, 2022. "Relationship Stability: Evidence from Labor and Marriage Markets," CEBI working paper series 22-20, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2220
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_20-22.pdf
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    More about this item

    Keywords

    Relationship Stability; Marriage dissolution; Job turnover; Social Skills; Non-Cognitive Skills; Grouped Fixed-E ect Estimator; Survey of Health; Ageing and Retirement in Europe;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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