Unemployment and separation: Evidence from five European countries

Abstract

<div>Since the 1970s, several European countries have experienced high union dissolution risk </div><div>as well as high unemployment rates. The extent to which adverse economic conditions are </div><div>associated with union instability is still unknown. This study explores the relationship </div><div>between both individual and aggregate unemployment and union dissolution risk in five </div><div>European countries before the recent economic crisis. Using rich longitudinal data from </div><div>Belgium, Finland, France, Germany, and Italy, the empirical analysis, based on discrete-</div><div>time event history models, shows that male unemployment consistently increases the risk </div><div>of union dissolution. While a strong association is observed between male unemployment </div><div>and separation at the micro level, no association is found between male unemployment </div><div>and union dissolution at the macro level. The results for female unemployment are </div><div>mixed, and the size of the impact of female unemployment is smaller in magnitude than </div><div>that of male unemployment. In Germany and Italy, where until very recently work has </div><div>been less compatible with family life than in other countries, female unemployment is not </div><div>significantly associated with union dissolution<br /></div>