Economic Circumstances and the Stability of Nonmarital Cohabitation

Abstract

Using data from the first two waves of Survey of Labour and Income Dynamics (1993 to 1994), this article examines the role of economic circumstances in cohabitation dissolution through legal marriage or union separation. Data are analyzed using discrete-time event history methods separately for women and men and for each of the competing exits. The results show economic deprivation contributes to union instability; an overall deterioration in household economic circumstances increases the risk of union separation. Conversely, for both cohabiting women and men, an increase in personal earnings raises the likelihood of union separation, indicative of an independence effect. Whereas semiprofessional and skilled women are more likely to dissolve their unions through separation, professional and semi-professional men are more apt to marry their partners. Furthermore, women with incomes below the low-income cut-off point are more likely to separate than women with higher incomes. Implications of these results are discussed.