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Plant Closure and Marital Dissolution

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Abstract

We estimate the effect of plant closure on divorce using a panel data set comprising more than 80,000 married couples in Norway. Plant closure substantially increases the likelihood of marital dissolution of workers in affected plants. The marriages of husbands originally employed in plants that closed between 1995 and 2000 were 11 percent more likely to be dissolved by 2003 than comparable marriages of husbands in stable plants. Additional analyses suggest that the effect of plant closure on divorce is not due to unexpected reduction in earnings. The results are, however, consistent with role theories, in which the husband's attractiveness declines if he fails to fulfill a traditional role as a breadwinner.

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  • Mari Rege & Kjetil Telle & Mark Votruba, 2007. "Plant Closure and Marital Dissolution," Discussion Papers 514, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:514
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    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp514.pdf
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    Cited by:

    1. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    2. Marinescu, Ioana, 2016. "Divorce: What does learning have to do with it?," Labour Economics, Elsevier, vol. 38(C), pages 90-105.
    3. Kristiina Huttunen & Jenni Kellokumpu, 2016. "The Effect of Job Displacement on Couples' Fertility Decisions," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 403-442.
    4. Nikolova, Milena & Ayhan, Sinem H., 2016. "Your Spouse Is Fired! How Much Do You Care?," IZA Discussion Papers 10411, Institute for the Study of Labor (IZA).
    5. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    6. Inés Hardoy & Pål Schøne, 2014. "Displacement and household adaptation: insured by the spouse or the state?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 683-703, July.
    7. Yukichika Kawata, 2008. "Does High Unemployment Rate Result in a High Divorce Rate?: A Test for Japan," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, November.

    More about this item

    Keywords

    marital dissolution; divorce; new information; shock; plant closure; plant downsizing; displacement;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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