Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/225294 
Year of Publication: 
2020
Series/Report no.: 
Ruhr Economic Papers No. 868
Publisher: 
RWI - Leibniz-Institut für Wirtschaftsforschung, Essen
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
Persistent Identifier of the first edition: 
ISBN: 
978-3-96973-005-8
Document Type: 
Working Paper

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