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Job Displacement, Disability, and Divorce

Kerwin Kofi Charles1; Melvin Stephens Jr.

1 National Bureau of Economic Research

Journal of Labor Economics 2004

Earnings shocks should affect divorce probability by changing a couple’s expected gains from marriage. We find that the divorce hazard rises after a spouse’s job displacement but does not change after a spousal disability. This difference casts doubt on a purely pecuniary motivation for divorce following earnings shocks, since both types of shocks exhibit similar long‐run economic consequences. Furthermore, the increase in divorce is found only for layoffs and not for plant closings, suggesting that information conveyed about a partner’s noneconomic suitability as a mate due to a job loss may be more important than financial losses in precipitating divorce.

DOI
10.1086/381258
Volume
22 (2)
Pages
489-522
Language
en
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BibTeX
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