Precautionary Savings Behavior of Maritally Stressed Couples
Bibliographic Data
| ID | 6062374 |
|---|---|
| Authors | Michael S Finke (0000-0003-0927-9848, University of Missouri, corresponding author), Nancy L Pierce, N Pierce |
| Year | 2006 |
| Volume | 34 |
| Issue | 3 |
| Pages | 223-240 |
| Publication date | 2006-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Family and Consumer Sciences Research Journal (JOURNAL) |
| Journal identifiers | ISSN: 1077-727X • E-ISSN: 1552-3934 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1177/1077727x05283594 |
| OpenAlex | W2073102219 |
| Language | EN |
| Citations received | 8 |
| References cited | 31 |
According to precautionary savings theory, households tend to save more when future income is less certain. Divorce often results in reduced levels of household income and individual consumption comparable to other potential income shocks. Households that will divorce or separate in 5 years are identified from the Panel Study of Income Dynamics (1994–1999) to determine whether these households maintain greater wealth holdings in anticipation of divorce. When spouses earn comparable incomes, divorce‐prone households have significantly higher wealth levels (p < .01) than households that remain married. When there is a higher‐earning spouse, households have significantly lower wealth levels (p < .01) than households that remain married. Results suggest that spouses with comparable earnings treat divorce as a wealth shock, whereas higher‐earning spouses rationally dissave when divorce is imminent. Equitable wealth allocation for lower‐earning spouses may require a more detailed investigation of predivorce wealth changes
Demographic economics · Earnings · Economics · Labour economics · Market liquidity · Monetary economics · Panel Study of Income Dynamics · Permanent income hypothesis · Precautionary savings · Spouse · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Housing Market and Economics
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The Economic Costs of Marital Dissolution
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An Analysis of Sample Attrition in Panel Data
The Buffer-Stock Theory of Saving
Marriage and Household Decision-Making
Efficient Intra-Household Allocations
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Anticipating Divorce
The Effect of Expected Changes in Marital Status on Labor Supply Decisions of Women and Men
Thinking of Divorce, but Staying Married
The Economic Benefit of Remarriage
Recent trends in marital disruption
Stability across cohorts in divorce risk factors
A reconsideration of the economic consequences of marital dissolution
Losers and Winners
The Effect of Marriage and Divorce on Women's Economic Well-Being
Time-Dependent Effects of Wives' Employment on Marital Dissolution
Recent Trends in the Size Distribution of Household Wealth
Commitment and Dependency in Marriage
The Impact of Husbands' and Wives' Relative Earnings on Marital Disruption
Marital Disruption and the Employment of Married Women
The Timing of Divorce
| Citations per year | 0.42 |
|---|---|
| Citation span | 2007 - 2021 (15) |
| Highly cited | No |