DOES UNEMPLOYMENT LEAD TO THE BREAKDOWN OF A MARRIAGE? EVIDENCE FROM THE SLOVAK REPUBLIC
DOES UNEMPLOYMENT LEAD TO THE BREAKDOWN OF A MARRIAGE? EVIDENCE FROM THE SLOVAK REPUBLIC

Summary/Abstract: In a sample of 79 districts of the Slovak Republic for the period 1997 - 2019, we examine the connection between the unemployment rate and the crude divorce rate. Our findings reveal a negative and statistically significant relationship, which suggests a procyclical nature in terms of the economic cycle. The estimated coefficients are relatively consistent even after the addition of control variables considering socio - economic factors or fixed effects. The results of the regression analysis show that an increase in the unemployment rate by one percentage point is accompanied by a decrease in the crude divorce rate by an average of 0.024 units. These findings support the assumptions of the theory of the high costs of divorce that spouses must bear. In a period of high unemployment, it is more acceptable for spouses to stay married than to bear the high costs associated with legal proceedings or the loss of part of the joint savings. The analysis of possible non-linear relationships between the unemployment rate and the crude divorce rate also showed a negative relationship. Quantile regression also points to the U-shaped relationship between variables and supports the opportunity theory.

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