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Unemployment, Splitting up, and Spousal Income Replacement

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  • William Nilsson

Abstract

In this study, the consequences of unemployment for a Swedish sample of couples are analysed. The purpose is to estimate the possible income replacement that a female/male spouse can provide. Unemployment can also affect the probability that the couples split up. As not all couples remain in the analysis, a potential selection problem can occur. To deal with this problem, and also to handle unobserved heterogeneity, a sample selection model for panel data is estimated. Unemployment is not found to be correlated with a higher spousal income. Copyright 2008 The Author.

Suggested Citation

  • William Nilsson, 2008. "Unemployment, Splitting up, and Spousal Income Replacement," LABOUR, CEIS, vol. 22(1), pages 73-106, March.
  • Handle: RePEc:bla:labour:v:22:y:2008:i:1:p:73-106
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2007.00401.x
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    References listed on IDEAS

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    1. Mark Dynarski & Steven M. Sheffrin, 1987. "Consumption and Unemployment," The Quarterly Journal of Economics, Oxford University Press, vol. 102(2), pages 411-428.
    2. Kraft, Kornelius, 2001. "Unemployment and the Separation of Married Couples," Kyklos, Wiley Blackwell, vol. 54(1), pages 67-87.
    3. Charlier, Erwin & Melenberg, Bertrand & van Soest, Arthur, 2001. "An analysis of housing expenditure using semiparametric models and panel data," Journal of Econometrics, Elsevier, vol. 101(1), pages 71-107, March.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    5. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    6. Jan Erik Askildsen & Badi H. Baltagi & Tor Helge Holmås, 2003. "Wage policy in the health care sector: a panel data analysis of nurses' labour supply," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 705-719.
    7. Weiss, Yoram & Willis, Robert J, 1997. "Match Quality, New Information, and Marital Dissolution," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 293-329, January.
    8. Becker, Gary S & Landes, Elisabeth M & Michael, Robert T, 1977. "An Economic Analysis of Marital Instability," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1141-1187, December.
    9. Maloney, Tim, 1991. "Unobserved Variables and the Elusive Added Worker Effect," Economica, London School of Economics and Political Science, vol. 58(230), pages 173-187, May.
    10. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
    11. Kerwin Kofi Charles & Melvin Stephens, 2004. "Job Displacement, Disability, and Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 489-522, April.
    12. Dustmann, Christian & Rochina-Barrachina, María Engracia, 2000. "Selection Correction in Panel Data Models: An Application to Labour Supply and Wages," IZA Discussion Papers 162, Institute for the Study of Labor (IZA).
    13. James J. Heckman & Thomas E. Macurdy, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 47-74.
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    Cited by:

    1. Liat Raz-Yurovich, 2011. "Economic determinants of divorce among dual-earner couples: Jews in Israel," MPIDR Working Papers WP-2011-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    2. William Nilsson, 2008. "Spousal Income and Sick Leave: What do Twins Tell us About Causality?," Journal of Family and Economic Issues, Springer, vol. 29(3), pages 407-426, September.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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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