Montalto, 1994

Montalto, C. P. (1994). Married women’s labor force
participation as divorce insurance. Financial Counseling and Planning, 5,


Married Women’s Labor Force Participation as Divorce


Catherine Phillips Montalto (1)


If married women view
participation in the labor force as providing insurance against the negative
economic consequences of divorce, then married women with higher expectations
of divorce will be more likely to be employed. The Panel Study of Income
Dynamics, 1968-1983, is used to estimate the effect of the expectation of
divorce on the labor force participation decision of married women. The
longitudinal nature of the data is used to estimate the probability of divorce
for each married woman in the sample. Labor force participation is then modeled
as dependent on the individual’s expectation of future divorce. The empirical
results confirm that expectation of divorce increases labor force participation
of married women.

 Key Words: insurance, divorce, labor force participation

1. Catherine Phillips Montalto, Assistant Professor, Department of Family
Resource Management, The Ohio State University, 1787 Neil Ave., Columbus, OH
43210-1295. Phone: (614) 292-4571 Fax: (614) 292-7536. E-mail:


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