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Unemployment, Splitting up, and Spousal Income Replacement

  • William Nilsson

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.

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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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Article provided by CEIS in its journal LABOUR.

Volume (Year): 22 (2008)
Issue (Month): 1 (03)
Pages: 73-106

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Handle: RePEc:bla:labour:v:22:y:2008:i:1:p:73-106
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  1. Maloney, Tim, 1991. "Unobserved Variables and the Elusive Added Worker Effect," Economica, London School of Economics and Political Science, vol. 58(230), pages 173-87, May.
  2. 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 S293-329, January.
  3. Charlier, E. & Melenberg, B. & van Soest, A.H.O., 1997. "An Analysis of Housing Expenditure Using Semiparametric Models and Panel Data," Discussion Paper 1997-14, Tilburg University, Center for Economic Research.
  4. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  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. Dynarski, Mark & Sheffrin, Steven M, 1987. "Consumption and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 411-28, May.
  7. 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.
  8. Heckman, James J & Macurdy, Thomas E, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 47-74, January.
  9. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  10. 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.
  11. 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).
  12. Kraft, Kornelius, 2001. "Unemployment and the Separation of Married Couples," Kyklos, Wiley Blackwell, vol. 54(1), pages 67-87.
  13. 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 1141-87, December.
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