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Weathering the storm together: Does unemployment insurance help couples avoid divorce?
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Publication date
Authors
Kessler, Dorian
Hevenstone, Debora
Vandecasteele, Leen
Sepahniya, Samin
Journal Title
Journal ISSN
Volume Title
Publisher
SAGE
Abstract
This study examines whether unemployment insurance benefit generosity impacts divorce, drawing on full
population administrative data and a Swiss reform that reduced unemployment insurance maximum benefit
duration. We assess the effect of the reform by comparing the pre- to the post-reform change in divorce rates
among unemployed individuals who were affected by the reform with the change in divorce rates among a
statistically balanced group of unemployed individuals who was not affected by the reform. Difference-indifferences estimates suggest that the reform caused a 2.8 percentage point increase in divorce (a 25%
increase). Effects were concentrated among low-income couples (+58%) and couples with an unemployed
husband (+32%) though gender differences are attributable to men’s breadwinner status. Female main
breadwinners were more strongly affected (+78%) than male main breadwinners (+40%). Results confirm the
‘family stress model’ which posits that job search and financial stress cause marital conflict. Policymakers
should consider a broad array of impacts, including divorce, when considering reductions in unemployment
insurance generosity
Description
Keywords
Unemployment insurance, divorce, income, unemployment benefits, family stress, quasi-experiment
Citation
DOI of the original publication
Citation
Kessler, D., Hevenstone, D., Vandecasteele, L., & Sepahniya, S. (2022). Weathering the storm together: Does unemployment insurance help couples avoid divorce? Journal of European Social Policy, 1–16. https://doi.org/10.26041/fhnw-4591