Weathering the storm together: Does unemployment insurance help couples avoid divorce?

This study examines whether unemployment insurance benefit generosity impacts divorce, drawing on full population administrative data and a Swiss reform that reduced unemployment insurance maximum benefit duration. We assess the effect of the reform by comparing the pre- to the post-reform change in divorce rates among unemployed individuals who were affected by the reform with the change in divorce rates among a statistically balanced group of unemployed individuals who was not affected by the reform. Difference-in-differences estimates suggest that the reform caused a 2.8 percentage point increase in divorce (a 25% increase). Effects were concentrated among low-income couples (+58%) and couples with an unemployed husband (+32%) though gender differences are attributable to men's breadwinner status. Female main breadwinners were more strongly affected (+78%) than male main breadwinners (+40%). Results confirm the 'family stress model' which posits that job search and financial stress cause marital conflict. Policymakers should consider a broad array of impacts, including divorce, when considering reductions in unemployment insurance generosity.

The impact of unemployment benefits on birth outcomes: Quasi-experimental evidence from European linked register data.

Cash transfers have been shown to improve birth outcomes by improving maternal nutrition, increasing healthcare use, and reducing stress. Most of the evidence focuses on programs targeting the poorest in the US-a context with non-universal access to healthcare and strong health inequalities. It is thus unclear whether these results would apply to cash transfers targeting a less disadvantaged population and whether they apply to other contexts. We provide evidence on the impact of unemployment benefits on birth outcomes in Switzerland, where access to healthcare is near-universal and social assistance is relatively generous. Our study taps into a policy reform that reduced unemployment benefits by 56%. We use linked parent-child register data and difference-in-differences estimates as well as within sibling comparisons. We find that the reform did not impact birth outcomes when fathers were unemployed but reduced the birthweight of children when mothers were unemployed by 80g and body length by 6mm. There are stronger effects for children whose mothers were the primary earner before job loss, but effects do not differ systematically by household income. These results suggest that in the Swiss context, unemployment benefits improve birth outcomes by reducing (job search) stress rather than by improving nutrition or healthcare use. As such, cash transfers likely play a role for newborn health in most other contexts.