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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. Martin Halla & Julia Schmieder & Andrea Weber, 2020. "Job Displacement, Family Dynamics, and Spousal Labor Supply," American Economic Journal: Applied Economics, American Economic Association, vol. 12(4), pages 253-287, October.
    2. Lindgren, Petter Y. & Presterud, Ane Ofstad, 2021. "Expanding the Norwegian Armed Forces in the Time of Corona: Benefit-Cost Analysis in the Context of High Unemployment Rate," MPRA Paper 106405, University Library of Munich, Germany.
    3. Marinescu, Ioana, 2016. "Divorce: What does learning have to do with it?," Labour Economics, Elsevier, vol. 38(C), pages 90-105.
    4. 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.
    5. Milena Nikolova & Sinem H. Ayhan, 2019. "Your spouse is fired! How much do you care?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 799-844, July.
    6. Schone, Pal & Strom, Marte, 2019. "International Labor Market Competition and Spousal Labor Supply Responses," IZA Discussion Papers 12857, Institute of Labor Economics (IZA).
    7. Nikolova, Milena & Nikolaev, Boris N., 2021. "Family matters: The effects of parental unemployment in early childhood and adolescence on subjective well-being later in life," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 312-331.
    8. 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.
    9. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    10. Rishabh Tyagi, 2024. "Employment uncertainty and reproductive decisions in Norway: a register-based study based on plant closures," MPIDR Working Papers WP-2024-026, Max Planck Institute for Demographic Research, Rostock, Germany.
    11. Eliason, Marcus & Hensvik, Lena & Kramarz, Francis & Skans, Oskar Nordström, 2023. "Social connections and the sorting of workers to firms," Journal of Econometrics, Elsevier, vol. 233(2), pages 468-506.
    12. Bratsberg, Bernt & Kotsadam, Andreas & Walther, Selma, 2021. "Male Fertility: Facts, Distribution and Drivers of Inequality," IZA Discussion Papers 14506, Institute of Labor Economics (IZA).
    13. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    14. Bratsberg, Bernt & Fevang, Elisabeth & Røed, Knut, 2010. "Disability in the Welfare State: An Unemployment Problem in Disguise?," IZA Discussion Papers 4897, Institute of Labor Economics (IZA).
    15. Schøne, Pål & Strøm, Marte, 2021. "International labor market competition and wives’ labor supply responses," Labour Economics, Elsevier, vol. 70(C).
    16. Kramarz, Francis & Eliason, Marcus & Hensvik, Lena & Nordström Skans, Oskar, 2017. "The Causal Impact of Social Connections on Firms’ Outcomes," CEPR Discussion Papers 12135, C.E.P.R. Discussion Papers.
    17. Carina Keldenich & Christine Luecke, 2022. "Unlucky at work, unlucky in love: job loss and marital stability," Review of Economics of the Household, Springer, vol. 20(1), pages 243-278, March.
    18. 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;
    All these keywords.

    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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