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The Effects of Household Income Volatility on Divorce

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  • John M. Nunley
  • Alan Seals

Abstract

We extend the literature on the effects of earnings shocks on divorce by identifying separately the effects of transitory and permanent household income shocks and by allowing the shocks to have asymmetric effects across education and racial groups. The econometric evidence suggests negative (positive) transitory household income shocks increase (decrease) the probability of divorce, while there is only weak evidence that positive (negative) permanent household income shocks raise (lower) the probability of divorce. Some differences in the effects of household income shocks on divorce propensities arise for subsamples selected by education and race. Copyright © 2010 American Journal of Economics and Sociology, Inc..

Suggested Citation

  • John M. Nunley & Alan Seals, 2010. "The Effects of Household Income Volatility on Divorce," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(3), pages 983-1010, July.
  • Handle: RePEc:bla:ajecsc:v:69:y:2010:i:3:p:983-1010
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Reza Farzanegan & Hassan Fereidouni Gholipour, 2016. "Divorce and the cost of housing: evidence from Iran," Review of Economics of the Household, Springer, vol. 14(4), pages 1029-1054, December.
    2. Bradley Hardy, 2014. "Childhood Income Volatility and Adult Outcomes," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1641-1665, October.

    More about this item

    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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