The Effects of Divorce Risk on the Labour Supply of Married Couples
This paper presents a model of lifetime utility maximisation in which expectations of future marital transitions play a role in the determination of work hours. Married people with spouses who earn more are predicted to devote additional time to the labour market when they are confronted with a high likelihood of divorce and vice versa. Similarly, work hours should be positively associated with marriage probability for those single people who expect to marry a higher earning spouse. These predictions are tested using data from the National Longitudinal Survey of Youth 1979. Marriage and divorce probabilities are calculated from Cox proportional hazard models and are included in regressions of annual hours. Married women are found to work more when they face a high probability of divorce. This relationship holds both over an individual’s life-cycle and across people with different inherent risks of divorce. Similar results are found when a woman’s happiness with her marriage is used as a proxy for divorce risk.
|Date of creation:||Oct 2006|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Cornwell, Christopher & Rupert, Peter, 1997. "Unobservable Individual Effects, Marriage and the Earnings of Young Men," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 285-294, April.
- Joni Hersch & Leslie S. Stratton, 2000. "Household Specialization and the Male Marriage Wage Premium," ILR Review, Cornell University, ILR School, vol. 54(1), pages 78-94, October.
- Heineck, Guido, 2004.
"Does religion influence the labor supply of married women in Germany?,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
Elsevier, vol. 33(3), pages 307-328, July.
- Guido Heineck, 2002. "Does Religion Influence the Labour Supply of Married Women in Germany?," Discussion Papers of DIW Berlin 278, DIW Berlin, German Institute for Economic Research.
- Siobhan Austen, 2004. "Labour Supply and the Risk of Divorce: An Analysis of Australian Data," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(2), pages 153-165, 06.
- Peters, H Elizabeth, 1986. "Marriage and Divorce: Informational Constraints and Private Contracting," American Economic Review, American Economic Association, vol. 76(3), pages 437-454, June.
- Sanders Korenman & David Neumark, 1991. "Does Marriage Really Make Men More Productive?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 282-307.
- David Neumark & Sanders Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series 29, Board of Governors of the Federal Reserve System (U.S.).
- Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
- Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Discussion Papers in Economics at the University of Washington 91-08, Department of Economics at the University of Washington.
- Robert A. Nakosteen & Michael A. Zimmer, 1987. "Marital Status and Earnings of Young Men: A Model with Endogenous Selection," Journal of Human Resources, University of Wisconsin Press, vol. 22(2), pages 248-268.
- Kermit Daniel, "undated". "Does Marriage Make Men More Productive?," University of Chicago - Population Research Center 92-2, Chicago - Population Research Center.
- Blackburn, McKinley & Korenman, Sanders, 1994. "The Declining Marital-Status Earnings Differential," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(3), pages 247-270, July.
- Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-469, June.
- Shannon N. Seitz, 1999. "Labor Supply, Divorce and Remarriage," UWO Department of Economics Working Papers 9902, University of Western Ontario, Department of Economics.
- Haurin, Donald R, 1989. "Women's Labor Market Reactions to Family Disruptions," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 54-61, February.
- Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
- 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).
- Bedard, Kelly & Deschenes, Olivier, 2003. "Sex Preferences, Marital Dissolution and the Economic Status of Women," University of California at Santa Barbara, Economics Working Paper Series qt07g2372x, Department of Economics, UC Santa Barbara.
- Ahituv, Avner & Lerman, Robert I., 2005. "How Do Marital Status, Wage Rates, and Work Commitment Interact?," IZA Discussion Papers 1688, Institute for the Study of Labor (IZA).
- Eng Seng Loh, 1996. "Productivity Differences and the Marriage Wage Premium for White Males," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 566-589.
- Sen, Bisakha, 2000. "How important is anticipation of divorce in married women's labor supply decisions? An intercohort comparison using NLS data," Economics Letters, Elsevier, vol. 67(2), pages 209-216, May.
- Johnson John H., 2004. "Do Long Work Hours Contribute to Divorce?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-25, October.
- Jeffrey S. Gray, 1997. "The Fall in Men's Return to Marriage: Declining Productivity Effects or Changing Selection?," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 481-504.
- Wilbert van der Klaauw, 1996. "Female Labour Supply and Marital Status Decisions: A Life-Cycle Model," Review of Economic Studies, Oxford University Press, vol. 63(2), pages 199-235.
- Van Der Klaauw, W., 1993. "Female Labor Supply and Marital Status Decisions: A Life Cycle Model," Working Papers 93-23, C.V. Starr Center for Applied Economics, New York University.
- Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
- Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," Cahiers de recherche 0103, Université Laval - Département d'économique.
- Pierre-André Chiappori & Bernard Fortin & Guy Lacroix, 2001. "Marriage Market, Divorce Legislation and Household Labor Supply," CIRANO Working Papers 2001s-16, CIRANO.
- Allen, Douglas W, 1992. "Marriage and Divorce: Comment," American Economic Review, American Economic Association, vol. 82(3), pages 679-685, June.
- Teresa Martin & Larry Bumpass, 1989. "Recent trends in marital disruption," Demography, Springer;Population Association of America (PAA), vol. 26(1), pages 37-51, February.
- William R. Johnson & Jonathan Skinner, 1988. "Accounting for Changes in the Labor Supply of Recently Divorced Women," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 417-436.
- Chun, Hyunbae & Lee, Injae, 2001. "Why Do Married Men Earn More: Productivity or Marriage Selection?," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 307-319, April.
- Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall. Full references (including those not matched with items on IDEAS)