Income Dynamics in Couples and the Dissolution of Marriage and Cohabitation

We find negative effects of household income on separation and positive effects of the woman’s relative income, in line with earlier studies. The shape of the effect of the woman’s relative income, however, depends on the type of union. Movements away from income equality toward a male dominant pattern tend to increase the dissolution risk for cohabiting couples, whereas they reduce the dissolution risk for married couples. Movements away from income equality toward a female-dominant pattern (reverse specialization) increase the dissolution risks for both marriage and cohabitation. The findings suggest that equality is more protective for cohabitation, whereas specialization is more protective for marriage, although only when it fits a traditional pattern. Finally, we find that the stabilizing effects of income equality are more pronounced early in the marriage and that income equality also reduces the dissolution risk for same-sex couples.