Economic Consequences of Family Break-Ups. Income Before and After Family Break-Ups of Women in Germany and the United States

Abstract

This paper analyzes the economic consequences of family break-ups on women's household income using fixed effects panel regression on German (SOEP) and US American (PSID) panel data. Since Germany and the United States are two examples of opposing social models, reflected in their policy framework regarding family break-ups, country differences in the economic consequences are assumed. The cross-national comparison shows that the welfare state effect is higher for women in Germany. Over time, the effect decreases only slightly in Germany, whereas the decline is more distinct for US women. JEL Classifications: J12, J16