Economic Consequences of Union Dissolution in Italy: Findings from the European Community Household Panel

Union dissolution is a constantly increasing phenomenon across Europe-even in Italy where the prevalence of divorce has always been among the lowest. This poses several questions on the potential consequences of such an event on the families involved. Many studies show that women usually experience the worst financial consequences, although there are few analyses on Italy, given the relatively low levels of union instability. In this work we study the impact of separation on the economic well-being of men and women using data from the European Community Household Panel (ECHP), analyzed using both objective and subjective measures. By means of a matching method, we also estimate the effect of union dissolution, taking account of possible variations according to the different living arrangements adopted by ex-partners after separation. Results confirm that women experience worse economic distress than men. However, there is also a significant drop in economic well-being among non-custodial fathers who live alone after separation. In addition, it is found that income-based measures do not encapsulate all the dimensions of well-being, and therefore need to be complemented with other measures.Original Abstract: Les ruptures d'union sont en hausse constante en Europe-mEme en Italie oU la frEquence des divorces est parmi les plus basses. Cette tendance soulEve diffErentes questions sur les consEquences des ruptures sur les familles concernEes. De nombreuses Etudes ont montrE que c'Etaient les femmes qui subissaient les consEquences financiEres les plus dEfavorables, mais la situation est mal connue en Italie, du fait de la raretE relative du phEnomEne. Nous analysons l'impact de la sEparation sur le bien-Etre Economique des hommes et des femmes A partir des donnEes du Panel EuropEen des MEnages (ECHP), en nous appuyant A la fois sur des mesures objectives et subjectives. A l'aide d'appariements, les effets des ruptures d'unions sont estimEs, en considErant une variation possible suivant le type de mEnage dans lequel les anciens conjoints s'installent aprEs la sEparation. Les rEsultats confirment l'existence de plus grandes difficultEs Economiques chez les femmes. Toutefois, il y a Egalement une chute significative de bien-Etre Economique parmi les pEres qui n'ont pas la garde des enfants et vivent seuls aprEs la sEparation. En outre, il apparaIt que les mesures basEes sur le revenu ne reflEtent pas toutes les dimensions du bien-Etre, et doivent par consEquent Etr