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Partnership Dissolution in the UK – the Role of Economic Circumstances
Author(s) -
Boheim Rene,
Ermisch John
Publication year - 2001
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00216
Subject(s) - general partnership , dissolution , affect (linguistics) , economics , demographic economics , business , finance , psychology , engineering , communication , chemical engineering
Estimates based on couples with dependent children in the first eight years of the British Household Panel Study (1991‐98) indicate that changes in a couple's economic circumstances affect the probability that a partnership dissolves. In particular, unexpected improvements in finances substantially reduce the dissolution risk, which strongly supports the importance of new information in decisions concerning partnership dissolution. Measures of a couple's own expectations concerning their financial situation over the coming year have been used in conjunction with realised changes to gauge the impact of unexpected changes. The study also finds that the risk of partnership dissolution increases with the number of children.