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Divorce and the business cycle: a cross-country analysis

Listed author(s):
  • Rafael González-Val

    ()

    (Universidad de Zaragoza, Facultad de Economía y Empresa
    Institut d’Economia de Barcelona (IEB), Facultat d’Economia i Empresa)

  • Miriam Marcén

    ()

    (Universidad de Zaragoza, Facultad de Economía y Empresa)

Abstract In this paper, we examine the role of the business cycle in divorce. To do so, we use a panel of 29 European countries covering the period from 1991 to 2012. We find the unemployment rate negatively affects the divorce rate, pointing to a pro-cyclical evolution of the divorce rate, even after controlling for socio-economic variables and unobservable characteristics that can vary by country, and/or over time. Results indicate that a one-percentage-point increase in the unemployment rate involves almost 0.025 fewer divorces per thousand inhabitants. The impact is small, representing around 1.2 % of the average divorce rate in Europe during the period considered. Supplementary analysis, developed to explore a possible non-linear pattern, confirms a negative relationship between unemployment and divorce in European countries, with the inverse relationship being more pronounced in those countries with higher divorce rates.

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File URL: http://link.springer.com/10.1007/s11150-016-9329-x
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Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 15 (2017)
Issue (Month): 3 (September)
Pages: 879-904

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Handle: RePEc:kap:reveho:v:15:y:2017:i:3:d:10.1007_s11150-016-9329-x
DOI: 10.1007/s11150-016-9329-x
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Order Information: Web: http://www.springer.com/economics/microeconomics/journal/11150/PS2

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