Income Dynamics After Divorce. A Latent Growth Model of Income Change on the European Community Household Panel

Dimitri Mortelmans and Mieke Jansen

Brussels Economic Review, 2010, vol. 53, issue 1, 85-107

Abstract: Women suffer from severe income losses after partnership dissolution. This finding has been confirmed in many international comparative studies. Men on the other hand do not experience income decreases to the same extent. This article uses the European Household Panel (ECHP) to look at income dynamics after relationship dissolution. First, income declines are modelled. Second, the article looks at the two main strategies to cope with the economic consequences of a separation :repartnering and (re)employment. Using a multilevel growth model, the (relative) effect of both strategies is assessed in a cross-national longitudinal perspective. While men do not benefit financially form cohabiting with a new partner at all, repartnering proves to outweigh the benefits of re-entering the labour force or increasing the working hours for most women.

Keywords: Coping strategies; Divorce; Economic consequences; Multilevel growth models (search for similar items in EconPapers)
JEL-codes: C33 D10 D63 I31 J12 (search for similar items in EconPapers)
Date: 2010
Note: Numéro Spécial "Analyse des revenus individuels et de la dépendance financière des femmes et des hommes" Editrices :Danièle Meulders et Sile O'Dorchai
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