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The Effects of Household Income Volatility on Divorce

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Author Info
John M. Nunley

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Abstract

This paper extends empirical research on marital instability in two dimensions. First, I examine the effects of household income volatility on divorce. Second, I examine the effects of household income volatility on the divorce behavior of lower- and higher household income individuals. The results indicate that increases in household income volatility raise the probability of divorce for men, regardless of whether the household income shocks are positive or negative. For women, the effect is not consistent across different household income volatility measures; however, the preferred model specification suggests that only negative shocks raise the risk of divorce.

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Paper provided by Middle Tennessee State University, Department of Economics and Finance in its series Working Papers with number 200718.

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Date of creation: Sep 2007
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Handle: RePEc:mts:wpaper:200718

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Web page: http://www.mtsu.edu/~berc/working/Economics_Working_Papers.html
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Related research
Keywords: divorce household income volatility household income shocks

Find related papers by JEL classification:
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
D10 - Microeconomics - - Household Behavior - - - General

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  1. Ressler, Rand W & Waters, Melissa S, 2000. "Female Earnings and the Divorce Rate: A Simultaneous Equations Model," Applied Economics, Taylor and Francis Journals, vol. 32(14), pages 1889-98, November. [Downloadable!] (restricted)
  2. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December. [Downloadable!] (restricted)
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  3. Gregory D. Hess, 2004. "Marriage and Consumption Insurance: What's Love Got to Do with It?," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 290-318, April. [Downloadable!] (restricted)
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  4. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug.. [Downloadable!] (restricted)
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  5. Smith, James P, 1979. "The Distribution of Family Earnings," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 163-92, October.
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  6. Sen, Bisakha, 2000. "How important is anticipation of divorce in married women's labor supply decisions? An intercohort comparison using NLS data," Economics Letters, Elsevier, vol. 67(2), pages 209-216, May. [Downloadable!] (restricted)
  7. Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-69, June. [Downloadable!] (restricted)
  8. Laura Chadwick & Gary Solon, 2002. "Intergenerational Income Mobility among Daughters," American Economic Review, American Economic Association, vol. 92(1), pages 335-344, March. [Downloadable!] (restricted)
  9. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-72, July. [Downloadable!] (restricted)
  10. Melvin Stephens, 2001. "The Long-Run Consumption Effects Of Earnings Shocks," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 28-36, February. [Downloadable!] (restricted)
  11. Simon Burgess & Carol Propper & Arnstein Aassve, 2003. "The role of income in marriage and divorce transitions among young Americans," Journal of Population Economics, Springer, vol. 16(3), pages 455-475, 08. [Downloadable!] (restricted)
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