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Income Dynamics After Divorce. A Latent Growth Model of Income Change on the European Community Household Panel

Author

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  • Dimitri Mortelmans
  • Mieke Jansen

Abstract

Women suffer from severe income losses after partnership dissolution. This finding has been confirmed in many international comparative studies. Men on the other hand do not experience income decreases to the same extent. This article uses the European Household Panel (ECHP) to look at income dynamics after relationship dissolution. First, income declines are modelled. Second, the article looks at the two main strategies to cope with the economic consequences of a separation :repartnering and (re)employment. Using a multilevel growth model, the (relative) effect of both strategies is assessed in a cross-national longitudinal perspective. While men do not benefit financially form cohabiting with a new partner at all, repartnering proves to outweigh the benefits of re-entering the labour force or increasing the working hours for most women.

Suggested Citation

  • Dimitri Mortelmans & Mieke Jansen, 2010. "Income Dynamics After Divorce. A Latent Growth Model of Income Change on the European Community Household Panel," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 53(1), pages 85-107.
  • Handle: RePEc:bxr:bxrceb:2013/80866
    Note: Numéro Spécial "Analyse des revenus individuels et de la dépendance financière des femmes et des hommes" Editrices :Danièle Meulders et Sile O'Dorchai
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    More about this item

    Keywords

    Coping strategies; Divorce; Economic consequences; Multilevel growth models;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D10 - Microeconomics - - Household Behavior - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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