For Better or for Worse, But How About a Recession? / Jeremy Arkes, Yu-Chu Shen.

Format:

Book

Author/Creator:

Arkes, Jeremy.

Contributor:

National Bureau of Economic Research.

Shen, Yu-Chu.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16525.

NBER working paper series no. w16525

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

In light of the current economic crisis, we estimate hazard models of divorce to determine how state and national unemployment rates affect the likelihood of divorce. With 89,340 observations over the 1978-2006 period for 7633 couples from the 1979 NLSY, we find mixed evidence on whether increases in the unemployment rate lead to overall increases in the likelihood of divorce, which would suggest countercyclical divorce probabilities. However, further analysis reveals that the weak evidence is due to the weak economy increasing the risk of divorce only for couples in years 6 to 10 of marriage. For couples in years 1 to 5 and couples married longer than 10 years, there is no evidence of a pattern between the strength of the economy and divorce probabilities. The estimates are generally stronger in magnitude when using national instead of state unemployment rates.

Notes:

Print version record

November 2010.