Wealth Holdings and Portfolio Allocation of the Elderly: The Role of Marital History
This paper investigates the role of marital history in terms of explaining differences in wealth holdings and portfolio allocation of older individuals by studying data drawn from the Health and Retirement Study. Consistent with the previous literature, the results generally suggest that both men and women suffer from the negative shocks of past marital dissolutions in terms of household wealth accumulation. The significance level, however, differs across married couples, single males, and single females. Among currently married couples, the wealth gap between the stably married households and those who have some marital disruption experience is small enough in terms of overall wealth levels. This possibly suggests that, for those who remarry after divorce, there is recovery from the sufferings of marital disruptions, which have occurred earlier in the life cycle. While marital history variables turn out to be minor factors in explaining the dispersion in wealth holdings of currently single males, they play a major role in understanding that of single females. This is clearly consistent with previous work which concluded that after divorce both men and women suffer a decrease in well-being, but women’s decline is far more serious than men’s. The examination of the asset components of net worth also indicates that both the probability of owning a particular asset and the fraction of wealth allocated to that asset might vary depending on the elderly individuals’ marital history. The results are mixed in terms of gender and current marital status, which remind us the role of remarriage and gender specific responses to household dissolutions.
|Date of creation:||26 Oct 2008|
|Contact details of provider:|| Postal: 221 Burwood Highway, Burwood 3125|
Phone: 61 3 9244 3815
Fax: +61 3 5227 2655
Web page: http://www.deakin.edu.au/buslaw/aef/index.php
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Siwan Anderson & Jean-Marie Baland, 2002.
"The Economics of Roscas and Intrahousehold Resource Allocation,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 117(3), pages 963-995.
- Siwan Anderson, 2000. "The Economics of Roscas and Intra-Household Resource Allocation," Econometric Society World Congress 2000 Contributed Papers 1323, Econometric Society.
- Anderson, K.S. & Baland, J-M., 2000. "The Economics of Roscas and Intra-Household Resource Allocation," Discussion Paper 2000-83, Tilburg University, Center for Economic Research.
- Kathrine Daniels & Kathryn Rettig & Robert delMas, 2006. "Alternative Formulas for Distributing Parental Incomes at Divorce," Journal of Family and Economic Issues, Springer, vol. 27(1), pages 4-26, April.
- Nancy Jianakoplos & Alexandra Bernasek, 2008. "Family Financial Risk Taking When the Wife Earns More," Journal of Family and Economic Issues, Springer, vol. 29(2), pages 289-306, June.
- James M. Poterba & Andrew Samwick, 2001. "Household Portfolio Allocation over the Life Cycle," NBER Chapters,in: Aging Issues in the United States and Japan, pages 65-104 National Bureau of Economic Research, Inc.
- James M. Poterba & Andrew A. Samwick, 1997. "Household Portfolio Allocation Over the Life Cycle," NBER Working Papers 6185, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001. "What Accounts for the Variation in Retirement Wealth among U.S. Households?," American Economic Review, American Economic Association, vol. 91(4), pages 832-857, September.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997. "What Accounts for the Variation in Retirement Wealth Among U.S. Households?," Working Papers 97035, Stanford University, Department of Economics.
- B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 1997. "What Accounts for the Variation in Retirement Wealth Among U.S. Households?," NBER Working Papers 6227, National Bureau of Economic Research, Inc.
- M. Browning & P. A. Chiappori, 1998. "Efficient Intra-Household Allocations: A General Characterization and Empirical Tests," Econometrica, Econometric Society, vol. 66(6), pages 1241-1278, November.
- Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers 94-16, DELTA (Ecole normale supérieure).
- Martin Browning & P.A. Chiappori, 1996. "Efficient Intra-Household Allocations - A General Characterization and Empirical Tests," Discussion Papers 96-10, University of Copenhagen. Department of Economics.
- Martin Browning & Pierre-Andre Chiappori, 1994. "Efficient Intra-Household Allocations: a General Characterization and Empirical Tests," Department of Economics Working Papers 1994-02, McMaster University.
- Yoon Lee & Jean Lown & Deanna Sharpe, 2007. "Predictors of Holding Consumer and Mortgage Debt among Older Americans," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 305-320, June.
- Luis Cubeddu & Jose-Victor Rios-Rull, 1997. "Marital risk and capital accumulation," Staff Report 235, Federal Reserve Bank of Minneapolis.
- Sondra Beverly & Amanda Moore & Mark Schreiner, 2001. "A Framework of Asset-Accumulation Stages and Strategies," Development and Comp Systems 0109004, EconWPA.
- Clinton Gudmunson & Ivan Beutler & Craig Israelsen & J. McCoy & E. Hill, 2007. "Linking Financial Strain to Marital Instability: Examining the Roles of Emotional Distress and Marital Interaction," Journal of Family and Economic Issues, Springer, vol. 28(3), pages 357-376, September.
- 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.
- Matthew McKeever & Nicholas H. Wolfinger, 2001. "Reexamining the Economic Costs of Marital Disruption for Women," Social Science Quarterly, Southwestern Social Science Association, vol. 82(1), pages 202-217.
- Burkhauser, Richard V, et al, 1990. "Economic Burdens of Marital Disruptions: A Comparison of the United States and the Federal Republic of Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(4), pages 319-333, December.
- Lillard, Lee A & Weiss, Yoram, 1997. "Uncertain Health and Survival: Effects on End-of-Life Consumption," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 254-268, April.
- Lillard, L.A. & Weiss, Y., 1996. "Uncertain Health and Survival: Efefcts on End-of-Life Consumption," Papers 7-96, Tel Aviv.
- Yung-Ting Su, 2008. "Looking Beyond Retirement: Patterns and Predictors of Formal End-of-Life Planning Among Retirement Age Individuals," Journal of Family and Economic Issues, Springer, vol. 29(4), pages 654-673, December.
- Greg Duncan & Saul Hoffman, 1985. "A reconsideration of the economic consequences of marital dissolution," Demography, Springer;Population Association of America (PAA), vol. 22(4), pages 485-497, November.
- Gábor Kézdi & Robert J. Willis, 2003. "Who Becomes a Stockholder? Expectations, SUbjective Uncertainty, and Asset Allocation," Working Papers wp039, University of Michigan, Michigan Retirement Research Center.
- Richard Burkhauser & Greg Duncan & Richard Hauser & Roland Berntsen, 1991. "Wife or frau, women do worse: A comparison of men and women in the United States and Germany after marital dissolution," Demography, Springer;Population Association of America (PAA), vol. 28(3), pages 353-360, August.
- Audrey Light & Manuelita Ureta, 2003. "Living Arrangements, Employment Status, and the Economic Well-Being of Mothers: Evidence from Brazil, Chile and the United States," Working Papers 03-06, Ohio State University, Department of Economics.
- Slesnick, Daniel T., 2002. "Prices and Regional Variation in Welfare," Journal of Urban Economics, Elsevier, vol. 51(3), pages 446-468, May.
- Irina Grafova, 2007. "Your Money or Your Life: Managing Health, Managing Money," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 285-303, June.
- Jessie Fan & Cathleen Zick, 2006. "Expenditure Flows Near Widowhood," Journal of Family and Economic Issues, Springer, vol. 27(2), pages 335-353, June.
- Christine Lai, 2008. "How Retired Households and Households Approaching Retirement Handle Their Equity Investments in the United States," Journal of Family and Economic Issues, Springer, vol. 29(4), pages 601-622, December.
- David G. Schramm, 2006. "Individual and Social Costs of Divorce in Utah," Journal of Family and Economic Issues, Springer, vol. 27(1), pages 133-151, April.
- Marianne E. Page & Ann Huff Stevens, 2004. "The Economic Consequences of Absent Parents," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
- Shanta Pandey & Jeoung-hee Kim, 2008. "Path to Poverty Alleviation: Marriage or Postsecondary Education?," Journal of Family and Economic Issues, Springer, vol. 29(1), pages 166-184, March.
- 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.
- James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
- Venti, Steven F & Wise, David A, 1998. "The Cause of Wealth Dispersion at Retirement: Choice or Chance?," American Economic Review, American Economic Association, vol. 88(2), pages 185-191, May.
- Mary Arends-Kuenning & Suzanne Duryea, 2006. "The Effect of Parental Presence, Parents’ Education, and Household Headship on Adolescents’ Schooling and Work in Latin America," Journal of Family and Economic Issues, Springer, vol. 27(2), pages 263-286, June.
- Barbara O’Neill, 2007. "Overcoming Inertia: Do Automated Saving and Investing Strategies Work?," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 321-335, June.
- Steven Garasky & Susan Stewart, 2007. "Evidence of the Effectiveness of Child Support and Visitation: Examining Food Insecurity among Children with Nonresident Fathers," Journal of Family and Economic Issues, Springer, vol. 28(1), pages 105-121, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:dkn:econwp:eco_2008_16. 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: (Dr Xueli Tang)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.