Lost jobs, broken marriages

This paper examines the impact of both husbands’ and wives’ job displacement on the risk that the marriage ends in divorce. Using Swedish-linked employee–employer data, all married couples in which one of the spouses lost his or her job because of an establishment closure in 1987 or 1988 and a comparison sample were identified. Over a 12-year period, the excess risk of divorce among couples’ in which the husband was displaced was 13% and statistically significant. The estimated impact of wives’ job displacements was of almost the same size, but not statistically significant.