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Unemployment, Splitting Up and Spousal Income Replacement

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  • Nilsson, William

    (Department of Economics, Umeå University)

Abstract

In this study, the consequences of unemployment for a Swedish sample of couples are analyzed. The purpose is to estimate the possible income replacement that a spouse can provide. Unemployment can also affect the probability that the couples split up. Since not all couples remain in the analysis, a potential selection problem can occur. To deal with this problem, and also to take care of unobserved heterogeneity, a sample selection model for panel data is estimated. The results indicate that it is necessary to take into account the selection problem. A period in unemployment is found to be correlated with a higher female income only in the case of men who earned a fairly high income before becoming unemployed. Women who earned a fairly low income and were subject to a long period of unemployment are found to be compensated by a higher male income.

Suggested Citation

  • Nilsson, William, 2005. "Unemployment, Splitting Up and Spousal Income Replacement," Umeå Economic Studies 651, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0651
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    References listed on IDEAS

    as
    1. Mark Dynarski & Steven M. Sheffrin, 1987. "Consumption and Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 411-428.
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    5. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    6. Jan Erik Askildsen & Badi H. Baltagi & Tor Helge Holmås, 2003. "Wage policy in the health care sector: a panel data analysis of nurses' labour supply," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 705-719, September.
    7. Paul Bingley & Ian Walker, 2001. "Household Unemployment and the Labour Supply of Married Women," Economica, London School of Economics and Political Science, vol. 68(270), pages 157-186, May.
    8. Weiss, Yoram & Willis, Robert J, 1997. "Match Quality, New Information, and Marital Dissolution," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 293-329, January.
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    Cited by:

    1. Anna Barbuscia & Ariane Pailhé & Anne Solaz, 2023. "Do Income and Employment Uncertainty Affect Couple Stability? Evidence for France During the COVID-19 Pandemic," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-35, December.
    2. Ehlert, Martin, 2016. "The Impact of Losing Your Job: Unemployment and Influences from Market, Family, and State on Economic Well-Being in the US and Germany," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 184652.
    3. Liat Raz-Yurovich, 2011. "Economic determinants of divorce among dual-earner couples: Jews in Israel," MPIDR Working Papers WP-2011-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    4. William Nilsson, 2008. "Spousal Income and Sick Leave: What do Twins Tell us About Causality?," Journal of Family and Economic Issues, Springer, vol. 29(3), pages 407-426, September.
    5. Liat Raz-Yurovich, 2012. "Economic Determinants of Divorce Among Dual-Earner Couples: Jews in Israel [Les déterminants économiques du divorce parmi les couples à double revenu : le cas des juifs en Israël]," European Journal of Population, Springer;European Association for Population Studies, vol. 28(2), pages 177-203, May.

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    More about this item

    Keywords

    unemployment; divorce; spousal response; sample selection; panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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