Presenter: Peter Fallesen (Stockholm University).
When: Tuesday 9th May, 13.30-15.00.
Where: Seminar Room 3, Badia Fiesolana.
Abstract: Research shows that union dissolution has different consequences for men and women’s labor market outcomes, and that the presence of shared children mediates these differences. We do not know, however, whether and to what extent these important and gendered consequences of union dissolution depend on the child’s age when the parents dissolve their union. In this study, we use a large longitudinal population data set on unions and salaried income to examine how children’s age at union dissolution influences parents’ salaried income the first ten year after the child was born. Using both fixed effects difference-in-differences models and a natural experiment that affected time to dissolution but not dissolution risk for a smaller subsample, we control for selection into certain levels of salaried income. Results show that women who experience union dissolution while their children are younger have lower subsequent salary and labor market attachment. The effect on gross income is plausibly lower, likely due to income transfers from alimony payments or public benefits. Results show no substantial effect of children’s age at time of union dissolution for fathers’ salaried or gross income. We investigate several likely mechanisms, and show that women decrease labor market participation and experience less return to job market experience when their children are younger at time of union dissolution.