INCOME, WORK AND MARITAL DISSOLUTION - CANADIAN EXPERIMENTAL-EVIDENCE

Marital dissolutions occur for a variety of reasons. Among low income families, the added stress of inadequate earnings, intermittent job spells, and high unemployment may contribute to the decision to end a marriage. One approach to end poverty and marital instability is to give income assistance to the poor. At the same time, cash transfers might foster family breakups, intentionally or otherwise. For example, if the welfare system is designed such that individuals are better off living separately than together, there will be a financial incentive to split.