Urban Density and the Procyclicality of Divorce

This study measures the response of marriage to fluctuations in local labor market conditions more precisely than previous studies by using a newly-digitized data set of all divorces and annulments granted in US counties from1970 to 1988. The observations are aggregated to the census-defined Labor Market Areas level, which allows for testing of heterogeneous treatment effects depending on the urban density levels in the LMA. Results show a strong, robust, and pro-cyclical relationship between employment rates and divorce rates. Importantly the disaggregated testing shows that the observed trend is driven by rural regions with many urban areas showing an a-cyclical or counter-cyclical patter. This finding is significant in understanding regional trends and demographic patterns.