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Gender Differences in Debt Repayment Problems after Divorce
Author(s) -
LYONS ANGELA C.,
FISHER JONATHAN
Publication year - 2006
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2006.00060.x
Subject(s) - alimony , affect (linguistics) , debt , payment , economics , panel study of income dynamics , welfare , demographic economics , marital status , household debt , child support , labour economics , psychology , demography , finance , political science , sociology , market economy , population , communication , law
Studies have shown that a growing number of divorced women were experiencing debt repayment problems during the 1980s. This study uses data from the Panel Study of Income Dynamics to (1) examine how debt repayment problems differ by marital status and gender and (2) investigate the role that supplemental income payments play in helping to mitigate repayment problems. The results show that divorced men and women are more likely to default on their debt obligations than married households. Further analysis reveals that increases in welfare payments significantly decrease the likelihood of default for divorced women but do not affect the probability of default for divorced men and married households. There is no evidence that payments related to child support and alimony affect default rates. The findings suggest that welfare benefits may help to mitigate the economic consequences of divorce for women.