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Marital splits and income changes over the longer term

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  • P. Jenkins, Stephen

Abstract

What happens to people’s incomes when their or their parents’ marital union dissolves? Using data from waves 1-14 (survey years 1991-2004) of the British Household Panel Survey, I show that marital splits are associated with short-term declines in income for separating wives and children relative to separating husbands, but the size of the decline has declined over time markedly for women with children and this most likely reflects the effects of secularly rising employment rates and, related, the introduction of Working Families Tax Credit in 1998. Analysis of income trajectories suggests that in the five years following a marital split, incomes for separating wives recover but not to their previous levels.

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  • P. Jenkins, Stephen, 2008. "Marital splits and income changes over the longer term," ISER Working Paper Series 2008-07, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2008-07
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    Cited by:

    1. Paul Gregg & Susan Harkness & Sarah Smith, 2009. "Welfare Reform and Lone Parents in the UK," Economic Journal, Royal Economic Society, vol. 119(535), pages 38-65, February.
    2. P. Jenkins, Stephen, 2009. "Spaghetti unravelled: a model-based description of differences in income-age trajectories," ISER Working Paper Series 2009-30, Institute for Social and Economic Research.
    3. Brewer, Mike & Nandi, Alita, 2014. "Partnership dissolution: how does it affect income, employment and well-being?," ISER Working Paper Series 2014-30, Institute for Social and Economic Research.
    4. Hayley Fisher & Anna Zhu, 2019. "The Effect of Changing Financial Incentives on Repartnering," The Economic Journal, Royal Economic Society, vol. 129(623), pages 2833-2866.
    5. Marisa Bucheli & Andrea Vigorito, 2021. "Short- and Medium-term Effects of Parental Separation on Children’s Well-being. Evidence from Uruguay," Documentos de Trabajo (working papers) 21-09, Instituto de Economía - IECON.
    6. Christina Boll, 2011. "Mind the gap—German motherhood risks in figures and game theory issues," International Economics and Economic Policy, Springer, vol. 8(4), pages 363-382, December.
    7. Alejandra Rodríguez Sánchez & Anette Fasang & Susan Harkness, 2021. "Gender division of housework during the COVID-19 pandemic: Temporary shocks or durable change?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(43), pages 1297-1316.
    8. Christiaan W. S. Monden & Wilfred J. G. Uunk, 2013. "For Better and for Worse: The Relationship Between Union Dissolution and Self-Assessed Health in European Panel Data," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 103-125, February.
    9. Bucheli, Marisa & Vigorito, Andrea, 2019. "Union dissolution and well-being in Uruguay," World Development, Elsevier, vol. 117(C), pages 61-71.
    10. Harkness, Susan, 2022. "The accumulation of disadvantage: how motherhood and relationship breakdown influence married and single mothers’ economic outcomes," ISER Working Paper Series 2022-03, Institute for Social and Economic Research.
    11. Marisa Bucheli & Andrea Vigorito, 2021. "Short-and Medium-term Effects of Parental Separation on Children’s Well-Being. Evidence from Uruguay," Documentos de Trabajo (working papers) 0721, Department of Economics - dECON.
    12. Daniel Brüggmann, 2020. "Women’s employment, income and divorce in West Germany: a causal approach," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-22, December.

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