Unemployment and partnership dissolution

Abstract

Does unemployment increase the risk of partnership dissolution? This is investigated for
3,586 marital partnerships (marriages or cohabitations) in 15 waves of the British Household Panel Survey. Both short and long term effects are investigated using discrete time hazard regression models. Results indicate that any form of unemployment predicts partnership dissolution. The effect is similar when unemployment hits either a man or a woman. The effect of male unemployment is to a considerable degree mediated by low financial satisfaction among their partners. We find no indications that the unemployment effect can be explained by unobserved heterogeneity.