Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/195937
Authors: 
Bünnings, Christian
Hafner, Lucas
Reif, Simon
Tauchmann, Harald
Year of Publication: 
2019
Series/Report no.: 
FAU Discussion Papers in Economics 03/2019
Abstract: 
From an economic perspective, marriage and long-term partnership can be seen as a riskpooling device. This informal insurance contract is, however, not fully enforceable. Each partner is free to leave when his or her support is needed in case of an adverse life event. An adverse health shock is a prominent example for such events. Since relationship breakdown itself is an extremely stressful experience, partnership may backfire as informal insurance against health risks, if health shocks increase the likelihood of relationship breakdown. We address this question empirically, using survey data from Germany. Results from various matching estimators indicate that adverse shocks to mental health substantially increase the probability of a couple splitting up over the following two years. In contrast, there is little effect of a sharp decrease in physical health on relationship stability. If at all, physical health shocks that hit both partners simultaneously stabilize a relationship.
Subjects: 
separation
partnership dissolution
health shock
MCS
PCS
matching
JEL: 
I12
J12
D13
Document Type: 
Working Paper
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