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Stable Income, Stable Family / Isaac Swensen ⓡ, Jason M. Lindo ⓡ, Krishna Regmi.

By: Contributor(s): Material type: TextTextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w27753.Publication details: Cambridge, Mass. National Bureau of Economic Research 2020.Description: 1 online resource: illustrations (black and white)Subject(s): Online resources: Available additional physical forms:
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Abstract: We document the effect of unemployment insurance generosity on divorce and fertility, using an identification strategy that leverages state-level changes in maximum benefits over time and comparisons across workers who have been laid off and those that have not been laid off. The results indicate that higher benefit levels reduce the probability of divorce and increase the probability of having children for laid-off men. In contrast, for laid-off women we find little evidence of effects of unemployment insurance generosity on divorce and we find suggestive evidence that it reduces their fertility.
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August 2020.

We document the effect of unemployment insurance generosity on divorce and fertility, using an identification strategy that leverages state-level changes in maximum benefits over time and comparisons across workers who have been laid off and those that have not been laid off. The results indicate that higher benefit levels reduce the probability of divorce and increase the probability of having children for laid-off men. In contrast, for laid-off women we find little evidence of effects of unemployment insurance generosity on divorce and we find suggestive evidence that it reduces their fertility.

Hardcopy version available to institutional subscribers

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