Marriage and divorce: the role of unemployment insurance

B-Tier
Journal: Journal of Population Economics
Year: 2023
Volume: 36
Issue: 4
Pages: 2277-2308

Authors (2)

Bastian Schulz (Aarhus Universitet) Fabian Siuda (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract This paper examines how changes in household-level risk sharing affect the marriage market. We use as our laboratory a German unemployment insurance (UI) reform that tightened means-testing based on the partner’s income. The reduced generosity of UI increased the demand for household-level risk sharing, which lowered the attractiveness of individuals exposed to unemployment risk. Because unemployment risk correlates with non-German nationality, our main finding is that the UI reform led to a decrease in intermarriage. The 2004 expansion of the European Union had a comparable effect on intermarriage for the affected nationalities. Both reforms increased marital stability, which is consistent with better selection by couples.

Technical Details

RePEc Handle
repec:spr:jopoec:v:36:y:2023:i:4:d:10.1007_s00148-023-00961-1
Journal Field
Growth
Author Count
2
Added to Database
2026-01-29