2015
DOI: 10.2139/ssrn.2696077
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Divorce and the Business Cycle: A Cross-Country Analysis

Abstract: In this paper, we examine the role of the business cycle in divorce. To do so, we use a panel of 29 European countries covering the period from 1991 to 2012. We find the unemployment rate negatively affects the divorce rate, pointing to a pro-cyclical evolution of the divorce rate, even after controlling for socio-economic variables and unobservable characteristics that can vary by country, and/or over time. Results indicate that a onepercentage-point increase in the unemployment rate involves almost 0.025 few… Show more

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Cited by 8 publications
(6 citation statements)
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“…The situation in Europe is potentially different from the US because of better welfare protection, which can both attenuate the financial loss after unemployment and the cost of divorce. However, a recent study by González-Val and Marcén (2017) on 29 European countries also showed a small but significant negative relationship between divorce and national unemployment rates, which is robust to different specifications. Against this background, we expect to observe a lower divorce risk during economic downturns (Hypothesis 4b).…”
Section: Macro-effects Of Unemployment On Union Dissolutionmentioning
confidence: 81%
“…The situation in Europe is potentially different from the US because of better welfare protection, which can both attenuate the financial loss after unemployment and the cost of divorce. However, a recent study by González-Val and Marcén (2017) on 29 European countries also showed a small but significant negative relationship between divorce and national unemployment rates, which is robust to different specifications. Against this background, we expect to observe a lower divorce risk during economic downturns (Hypothesis 4b).…”
Section: Macro-effects Of Unemployment On Union Dissolutionmentioning
confidence: 81%
“…This is because, for partners to sustain their relationship, there has to be a minimal level of financial satisfaction (Zhang, Cheng, Wei, & Gong, 2018). Over a period of time, the socioeconomic dynamics of marriage and divorce have been associated with other factors that include demographics, and business cycles, among other factors (González-Val & Marcén, 2017;Kravdal, 1999).…”
Section: Introductionmentioning
confidence: 99%
“…A dynamic autoregressive distributed lag (ARDL) is employed in the study. Although previous studies have extensively investigated the determinants of divorce especially within the framework of marriage and unemployment (González-Val & Marcén, 2017, the current study is novel for notable reasons. First, this study provides an in-depth analysis, through a concise panel estimate that further reveals how divorce rate is determined among the OECD countries.…”
Section: Introductionmentioning
confidence: 99%
“… 2 An adjacent body of literature studies the relationship between context-level unemployment, or macroeconomic conditions, and divorce, instead of couple-level unemployment experiences. Some of these studies find evidence that higher unemployment rates and economic recessions are associated with lower divorce rates (Amato and Beattie 2011; Cherlin et al 2013; Chowdhury 2013; González-Val and Marcén 2017; Hellerstein and Morrill 2011; Kalmijn 2007; Schaller 2013) and lower likelihood of divorce (Hellerstein, Morrill, and Zou 2013). These studies support the “costs of divorce” approach, which poses that economic insecurity and uncertainty reduce the likelihood of separation because it makes couples depend more on each other.…”
mentioning
confidence: 99%