Abstract
Does divorce influence the economic gender gap between men and women? To answer this question, we use two datasets from Israel for the years 2012–2017 which provide information on both objective and subjective measures of economic and general well-being. We find that divorced women encounter a steep and persistent decline in their household income compared to divorced men. In addition, divorced women increase their employment significantly. Further, we find that divorced women report less satisfaction with their economic situation. We also find some indication that divorced women experience less ability to cover their monthly expenses, and possibly experience more stress compared to divorced men. We suggest that these factors may be interrelated. The decline in household income on one hand, and the increased employment on the other hand, decrease satisfaction with economic situation, and possibly lead to stress. This suggests a transmission pathway from objective economic disruption to subjective dissatisfaction and psychological stress among divorced women.
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