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The Effects of Household Income Volatility on Divorce

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  • John M. Nunley

Abstract

This paper extends empirical research on marital instability in two dimensions. First, I examine the effects of household income volatility on divorce. Second, I examine the effects of household income volatility on the divorce behavior of lower- and higher household income individuals. The results indicate that increases in household income volatility raise the probability of divorce for men, regardless of whether the household income shocks are positive or negative. For women, the effect is not consistent across different household income volatility measures; however, the preferred model specification suggests that only negative shocks raise the risk of divorce.

Suggested Citation

  • John M. Nunley, 2007. "The Effects of Household Income Volatility on Divorce," Working Papers 200718, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:200718
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    Cited by:

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    2. Jeffrey Anvari-Clark & David Ansong, 2022. "Predicting Financial Well-Being Using the Financial Capability Perspective: The Roles of Financial Shocks, Income Volatility, Financial Products, and Savings Behaviors," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 730-743, December.
    3. Bradley Hardy, 2014. "Childhood Income Volatility and Adult Outcomes," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1641-1665, October.
    4. Pierre–André Chiappori & Natalia Radchenko & Bernard Salanié, 2018. "Divorce and the duality of marital payoff," Review of Economics of the Household, Springer, vol. 16(3), pages 833-858, September.
    5. Jeffrey Anvari-Clark & Theda Rose, 2023. "Financial Behavioral Health and Investment Risk Willingness: Implications for the Racial Wealth Gap," IJERPH, MDPI, vol. 20(10), pages 1-29, May.
    6. David Boto‐García & Federico Perali, 2024. "The association between marital locus of control and break‐up intentions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(1), pages 35-57, January.

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    More about this item

    Keywords

    divorce; household income volatility; household income shocks;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D10 - Microeconomics - - Household Behavior - - - General

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