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Household Debt and Marital Instability: Evidence from the Korean Labor and Income Panel Study

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  • Yunhee Chang
  • Ki Lee

Abstract

Korean society has recently experienced rapid increases in household debt and divorce rates. This study investigates whether household debt and debt ratios lower marital stability and increase the probability of divorce among Korean families. Six-year panels from the Korean Labor and Income Panel Study (KLIPS) household surveys were used for analysis. The effect of household debt upon the probability of divorce was estimated through pooled and population-averaged Logit models. The results suggest that household financial strain measured by the amount of household debt and the debt-to-income ratios does not significantly affect the probability of divorce. This finding contradicts the widespread notion that households’ excessive borrowing has been partially responsible for the recent increase in divorce rates in Korea. Copyright Springer Science+Business Media, Inc. 2006

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  • Yunhee Chang & Ki Lee, 2006. "Household Debt and Marital Instability: Evidence from the Korean Labor and Income Panel Study," Journal of Family and Economic Issues, Springer, vol. 27(4), pages 675-691, December.
    • Handle: RePEc:kap:jfamec:v:27:y:2006:i:4:p:675-691
    DOI: 10.1007/s10834-006-9039-2
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    References listed on IDEAS

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    Cited by:

    1. Aydogan Ulker, 2009. "Wealth Holdings and Portfolio Allocation of the Elderly: The Role of Marital History," Journal of Family and Economic Issues, Springer, vol. 30(1), pages 90-108, March.
    2. Deborah Thorne, 2010. "Extreme Financial Strain: Emergent Chores, Gender Inequality and Emotional Distress," Journal of Family and Economic Issues, Springer, vol. 31(2), pages 185-197, June.
    3. Jeffrey Dew, 2011. "The Association Between Consumer Debt and the Likelihood of Divorce," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 554-565, December.

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