Women’s Earnings Before and after Marital Dissolution: Evidence from Longitudinal Earnings Records Matched to Survey Data

Abstract:     
This paper investigates the change in women’s earnings following marital dissolution from a longitudinal approach. Using unique data that matches the Survey of Income and Program Participation (SIPP) with Social Security longitudinal earnings records, we examine marital dissolution events occurring between 1985 and 2003. Results show significant increases in women’s labor market involvement and earnings following marital dissolutions over the past two decades. We find greater labor force involvement prior to the dissolution event among more recent divorcees; however, among those already in the labor force, the pattern of change in earnings associated with divorce has changed little over the examined period. Human capital and family characteristics were associated with the change in earnings after marital dissolution.

Keywords: Divorce, Earnings, Family status change, Administrative earnings data

JEL Classification: J12, J10

Accepted Paper Series