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Author: Drewianka, Scott
Resulting in 1 citation.
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Drewianka, Scott Meder, Martin Erik |
Simultaneity and Selection in Financial Hardship and Divorce Review of Economics of the Household published online (26 October 2020): DOI: 10.1007/s11150-020-09518-7. Also: https://link.springer.com/article/10.1007/s11150-020-09518-7 Cohort(s): NLSY79 Publisher: Springer Keyword(s): Divorce; Income Dynamics/Shocks Permission to reprint the abstract has not been received from the publisher. While the correlation between financial hardship and divorce is well-documented, the causality remains unclear: it is plausible that divorce causes hardship, that hardship encourages divorce, or that unobserved factors produce both outcomes. We specify a model that nests these possibilities and estimate it using the National Longitudinal Survey of Youth 1979. Structural estimates indicate divorce reduces the income/needs ratio in women's households by 0.35 standard deviations, though this is partially offset by apparent anticipatory labor supply responses. We also find a negative structural error correlation between divorce and income/needs ratios, but no evidence that a change in hardship causes divorce. |
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Bibliography Citation
Drewianka, Scott and Martin Erik Meder. "Simultaneity and Selection in Financial Hardship and Divorce." Review of Economics of the Household published online (26 October 2020): DOI: 10.1007/s11150-020-09518-7.
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