IDEAS home Printed from https://ideas.repec.org/a/kap/reveho/v13y2015i4p735-769.html
   My bibliography  Save this article

Financial implications of relationship breakdown: Does marriage matter?

Author

Listed:
  • Hayley Fisher

    ()

  • Hamish Low

    ()

Abstract

In raw data in the UK, the income loss on separation for women who were cohabiting is less than the loss for those who were married. Cohabitants lose less even after controlling for observable characteristics including age and the number of children. This difference is not explained by differences in access to benefits or labor supply responses after separation. In contrast, there is no difference in the change in household income experienced by cohabiting and married men who do better on average than both groups of women. We show that the difference for women arises because of differences in the use of family support networks: cohabitants’ standard of living falls by less because they are more likely to live with other adults, particularly their family, following separation, even after controlling for age and children. Divorced women do not return to living with their extended families. The greater legal protection offered by marriage does not appear to translate into economic protection. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Hayley Fisher & Hamish Low, 2015. "Financial implications of relationship breakdown: Does marriage matter?," Review of Economics of the Household, Springer, vol. 13(4), pages 735-769, December.
  • Handle: RePEc:kap:reveho:v:13:y:2015:i:4:p:735-769
    DOI: 10.1007/s11150-015-9292-y
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11150-015-9292-y
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hayley Fisher, 2012. "Divorce Property Division Laws and the Decision to Marry or Cohabit," Journal of Law, Economics, and Organization, Oxford University Press, vol. 28(4), pages 734-753, October.
    2. Markus Grabka & Jan Marcus & Eva Sierminska, 2015. "Wealth distribution within couples," Review of Economics of the Household, Springer, vol. 13(3), pages 459-486, September.
    3. Arnstein Aassve & Gianni Betti & Stefano Mazzuco & Letizia Mencarini, 2007. "Marital disruption and economic well-being: a comparative analysis," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(3), pages 781-799.
    4. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    5. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, LISER.
    6. Susan Averett & Laura Argys & Julia Sorkin, 2013. "In sickness and in health: an examination of relationship status and health using data from the Canadian National Public Health Survey," Review of Economics of the Household, Springer, vol. 11(4), pages 599-633, December.
    7. Greg J. Duncan & Saul D. Hoffman, 1985. "Economic Consequences of Marital Instability," NBER Chapters,in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 427-470 National Bureau of Economic Research, Inc.
    8. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    9. Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-469, June.
    10. Kelly Bedard & Olivier Deschênes, 2005. "Sex Preferences, Marital Dissolution, and the Economic Status of Women," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    11. Sankar Mukhopadhyay, 2008. "Do women value marriage more? The effect of obesity on cohabitation and marriage in the USA," Review of Economics of the Household, Springer, vol. 6(2), pages 111-126, June.
    12. Suzanne Bianchi & Lekha Subaiya & Joan Kahn, 1999. "The gender gap in the economic well-being of nonresident fathers and custodial mothers," Demography, Springer;Population Association of America (PAA), vol. 36(2), pages 195-203, May.
    13. Joshua D. Angrist, 1998. "Estimating the Labor Market Impact of Voluntary Military Service Using Social Security Data on Military Applicants," Econometrica, Econometric Society, vol. 66(2), pages 249-288, March.
    14. Matthew Gray & Bruce Chapman, 2007. "Relationship break-down and the economic welfare of Australian mothers and their children," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(4), pages 253-277, December.
    15. Deborah A. Cobb-Clark & Thomas Crossley, 2003. "Econometrics for Evaluations: An Introduction to Recent Developments," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 491-511, December.
    16. Uhrig, S.C. Noah, 2008. "The nature and causes of attrition in the British Household Panel Study," ISER Working Paper Series 2008-05, Institute for Social and Economic Research.
    17. repec:ags:stataj:116022 is not listed on IDEAS
    18. Becker, Sascha O. & Ichino, Andrea, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 1-20.
    19. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-349, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:eurpop:v:34:y:2018:i:4:d:10.1007_s10680-017-9437-1 is not listed on IDEAS

    More about this item

    Keywords

    Divorce; Cohabitation; Income loss; D10; J12;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:reveho:v:13:y:2015:i:4:p:735-769. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.