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Longitudinal Study: HILDA
Title: The effect of changing financial incentives on repartnering
Authors: Zhu, Anna 
Fisher, Hayley 
Institution: University of Sydney
Publication Date: Sep-2016
Keywords: Family
Family Finances
Abstract: This paper examines how a reduction in the financial resources available to lone parents affects repartnering. We exploit an Australian natural experiment that re- duced the financial resources available to a subset of separating parents. Using bi- weekly administrative data capturing separations occurring among low and middle income couples, we show that the policy reform significantly increased the repart- nering hazard for affected separating mothers, especially those with low labour force attachment. Reconciliation with the woman’s prior partner drives this result. Complementary analysis of an annual panel survey demonstrates that repartnering impacts are also present over the five years post-separation and that the impact on repartnering hazards is increasing in the extent of financial loss and the urgency of the impact. Together, these results demonstrate that one way that lone mothers respond to a reduction in financial resources available at the time of relationship breakdown is by repartnering more quickly.
Keywords: Families; Relationships -- Separation; Stress -- Financial stress
Research collection: Reports and technical papers
Appears in Collections:Reports

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