Household Income after Separation: Does Initiator Status Make a Difference?

Belinda Hewitt, University of Queensland

This study investigated whether and to what extent taking the initiative to separate impacted on equivalised annual household income after separation. The analytic sample comprised 6,476 first marriages of men and women at wave 1 of the Household Income and Labor Dynamics in Australia (HILDA) survey who are followed over the subsequent 6 waves. Using mixed effect regression models, the results suggested there were no significant differences in equivalised annual household income for men or women who initiated separation relative to men or women who reported a partner or jointly initiated separation. Overall, men who remained married had significantly lower equivalized household income than those who separated. In contrast women who separated experienced a significant drop in their equivalised household income relative to women who remained married. These gender differences were significant. The findings are consistent with previous research indicating men’s equivalised household income increases and women’s decreases after separation.