Joint pot or separate purses? Unpacking the cohabitation-marriage gap in income pooling across Europe
DOI:
https://doi.org/10.20377/jfr-1264Keywords:
income pooling, cohabitation, marriage, Europe, selection, commitment, KHB mediation analysis, decompositionAbstract
Objective: This study examines the cohabitation-marriage gap in income pooling across Europe and quantifies the relative importance of selection and commitment mechanisms for couples’ decisions to share or separate economic resources.
Background: Prior research has not effectively measured the relative importance of selection and commitment. We argue that, partly, this is because previous studies treated cohabiters and married couples as two homogeneous groups. We therefore distinguish four union types: directly married, married after cohabitation, cohabiters with and without marital intentions.
Method: Using data from the Generation and Gender Survey Round 1 and logistic regression models with KHB decomposition, we analyze income pooling behaviors in 11 countries (n=34,061).
Results: Findings reveal a gradient in income pooling in seven countries (Germany, France, Austria, Lithuania, Poland, Czech Republic and Sweden), with directly married couples being most likely to pool their incomes, followed by couples who married after cohabitation, cohabiters with and without marital intentions. Commitment-related variables explain more variation in income pooling between union types than selection-related ones, except when comparing directly married and married after cohabitation, where selection is more relevant. In Bulgaria, Russia, Georgia, and Romania, neither mechanism significantly impacts the minimal gap.
Conclusion: Income pooling varies substantially between as well as within marriage and cohabitation. Commitment is generally more influential than selection for understanding couples’ resource sharing, though institutional and cultural settings condition the strength of these patterns.
References
Becker, G. S. (1981). A Treatise on the Family. Cambridge, Mass.: Harvard University Press.
Bennett, F. (2013). Researching within‐household distribution: Overview, developments, debates, and methodological challenges. Journal of Marriage and Family, 75(3), 582-597. DOI: https://doi.org/10.1111/jomf.12020
Billari, F. C., & Liefbroer, A. C. (2016). Why still marry? The role of feelings in the persistence of marriage as an institution1. The British Journal of Sociology, 67(3), 516-540. DOI: https://doi.org/10.1111/1468-4446.12202
Brines, J., & Joyner, K. (1999). The ties that bind: Principles of cohesion in cohabitation and marriage. American sociological review, 64(3), 333-355. DOI: https://doi.org/10.1177/000312249906400302
Bumpass, L., & Lu, H.-H. (2000). Trends in cohabitation and implications for children s family contexts in the United States. Population Studies, 54(1), 29-41. DOI: https://doi.org/10.1080/713779060
Burgoyne, C. B., & Morison, V. (1997). Money in remarriage: Keeping things simple–and separate. The sociological review, 45(3), 363-395. DOI: https://doi.org/10.1111/1467-954X.00069
Cherlin, A. J. (2004). The deinstitutionalization of American marriage. Journal of Marriage and Family, 66(4), 848-861. DOI: https://doi.org/10.1111/j.0022-2445.2004.00058.x
Cherlin, A. J. (2010). The marriage-go-round: The state of marriage and the family in America today. Vintage.
Çineli, B. (2020). Money management and gender equality: An analysis of dual‐earner couples in Western Europe. Family Relations, 69(4), 803-819. DOI: https://doi.org/10.1111/fare.12465
Çineli, B. (2022). Who manages the money at home? Multilevel analysis of couples’ money management across 34 countries. Gender & society, 36(1), 32-62. DOI: https://doi.org/10.1177/08912432211057920
Çineli, B., & Mugiyama, R. (2023). Money management over the course of marriage: Parenthood, employment and household financial organization in Japan. Advances in Life Course Research, 56, 100544. DOI: https://doi.org/10.1016/j.alcr.2023.100544
Eickmeyer, K. J., Manning, W. D., Longmore, M. A., & Giordano, P. C. (2023). Exploring the married-cohabiting income pooling gap among young adults. Journal of family and economic issues, 44(4), 990-1006. DOI: https://doi.org/10.1007/s10834-023-09885-0
Elizabeth, V. (2001). Managing money, managing coupledom: A critical examination of cohabitants’ money management practices. The sociological review, 49(3), 389-411. DOI: https://doi.org/10.1111/1467-954X.00338
Evans, A., & Gray, E. (2021). Cross-national differences in income pooling among married and cohabiting couples. Journal of Marriage and Family, 83(2), 534-550. DOI: https://doi.org/10.1111/jomf.12721
Fraboni, R., & Vitali, A. (2019). Gender differences in couples' matrimonial property regime in Italy. Journal of Marriage and Family, 81(4), 885-904. DOI: https://doi.org/10.1111/jomf.12574
Hamplova, D., & Bourdais, C. L. (2009). One Pot or Two Pot Strategies? Income Pooling in Married and Unmarried Households in Comparative Perspective. Journal of Comparative Family Studies, 40(3), 355-385. DOI: https://doi.org/10.3138/jcfs.40.3.355
Heimdal, K. R., & Houseknecht, S. K. (2003). Cohabiting and Married Couples' Income Organization: Approaches in Sweden and the United States. Journal of Marriage and Family, 65(3), 525-538. DOI: https://doi.org/10.1111/j.1741-3737.2003.00525.x
Heuveline, P., & Timberlake, J. M. (2004). The role of cohabitation in family formation: The United States in comparative perspective. Journal of Marriage and Family, 66(5), 1214-1230. DOI: https://doi.org/10.1111/j.0022-2445.2004.00088.x
Hiekel, N. (2014). The different meanings of cohabitation across Europe: How cohabiters view their unions and differ in their plans and behaviors.
Hiekel, N., Liefbroer, A. C., & Poortman, A.-R. (2014a). Income pooling strategies among cohabiting and married couples DOI: https://doi.org/10.4054/DemRes.2014.30.55
A comparative perspective. Demographic Research, 30, 1527-1560.
Hiekel, N., Liefbroer, A. C., & Poortman, A.-R. (2014b). Understanding diversity in the meaning of cohabitation across Europe. European Journal of Population, 30(4), 391-410. DOI: https://doi.org/10.1007/s10680-014-9321-1
Himmelweit, S., Santos, C., Sevilla, A., & Sofer, C. (2013). Sharing of resources within the family and the economics of household decision making. Journal of Marriage and Family, 75(3), 625-639. DOI: https://doi.org/10.1111/jomf.12032
Karlson, K. B., Holm, A., & Breen, R. (2012). Comparing Regression Coefficients Between Same-sample Nested Models Using Logit and Probit:A New Method. Sociological Methodology, 42(1), 286-313. DOI: https://doi.org/10.1177/0081175012444861
Kenney, C. T. (2006). The power of the purse: Allocative systems and inequality in couple households. Gender & society, 20(3), 354-381. DOI: https://doi.org/10.1177/0891243206286742
Kiernan, K. (2001). The rise of cohabitation and childbearing outside marriage in Western Europe. International journal of law, policy and the family, 15(1), 1-21. DOI: https://doi.org/10.1093/lawfam/15.1.1
Kiernan, K. (2004). Unmarried Cohabitation and Parenthood in Britain and Europe. Law & Policy, 26(1), 33-55. DOI: https://doi.org/10.1111/j.0265-8240.2004.00162.x
Klüsener, S., Perelli-Harris, B., & Sánchez Gassen, N. (2013). Spatial aspects of the rise of nonmarital fertility across Europe since 1960: The role of states and regions in shaping patterns of change. European Journal of Population/Revue européenne de Démographie, 29(2), 137-165. DOI: https://doi.org/10.1007/s10680-012-9278-x
Lauer, S. R., & Yodanis, C. (2011). Individualized marriage and the integration of resources. Journal of Marriage and Family, 73(3), 669-683. DOI: https://doi.org/10.1111/j.1741-3737.2011.00836.x
Lersch, P. M., Struffolino, E., & Vitali, A. (2022). Wealth in couples: Introduction to the special issue. European Journal of Population, 38(4), 623-641. DOI: https://doi.org/10.1007/s10680-022-09640-5
Lesthaeghe, R. (2014). The second demographic transition: A concise overview of its development. Proceedings of the National Academy of Sciences, 111(51), 18112-18115. DOI: https://doi.org/10.1073/pnas.1420441111
Lott, Y. (2017). When my money becomes our money: Changes in couples’ money management. Social Policy and Society, 16(2), 199-218. DOI: https://doi.org/10.1017/S1474746415000688
Lyngstad, T. H., Noack, T., & Tufte, P. A. (2010). Pooling of Economic Resources: A Comparison of Norwegian Married and Cohabiting Couples. European Sociological Review, 27(5), 624-635. DOI: https://doi.org/10.1093/esr/jcq028
Mood, C. (2010). Logistic regression: Why we cannot do what we think we can do, and what we can do about it. European Sociological Review, 26(1), 67-82. DOI: https://doi.org/10.1093/esr/jcp006
Pahl, J. (1989). Money and power in marriage. Money and Marriage 168-179. DOI: https://doi.org/10.1007/978-1-349-20268-3_9
Pahl, J. (1995). His money, her money: Recent research on financial organisation in marriage. Journal of economic psychology, 16(3), 361-376. DOI: https://doi.org/10.1016/0167-4870(95)00015-G
Pepin, J. R. (2019). Beliefs about money in families: Balancing unity, autonomy, and gender equality. Journal of Marriage and Family, 81(2), 361-379. DOI: https://doi.org/10.1111/jomf.12554
Pepin, J. R., & Cohen, P. N. (2021). Nation-level gender inequality and couples’ income arrangements. Journal of family and economic issues, 42(1), 13-28. DOI: https://doi.org/10.1007/s10834-020-09717-5
Perelli-Harris, B., Mynarska, M., Berrington, A., Berghammer, C., Evans, A., Isupova, O., Keizer, R., Klärner, A., Lappegård, T., & Vignoli, D. (2014). Towards a new understanding of cohabitation: Insights from focus group research across Europe and Australia. Demographic Research, 31, 1043-1078. DOI: https://doi.org/10.4054/DemRes.2014.31.34
Perelli‐Harris, B., & Gassen, N. S. (2012). How similar are cohabitation and marriage? Legal approaches to cohabitation across Western Europe. Population and development review, 38(3), 435-467. DOI: https://doi.org/10.1111/j.1728-4457.2012.00511.x
Poortman, A. R., & Mills, M. (2012). Investments in marriage and cohabitation: The role of legal and interpersonal commitment. Journal of Marriage and Family, 74(2), 357-376. DOI: https://doi.org/10.1111/j.1741-3737.2011.00954.x
Präg, P. (2019). Understanding the Marriage–Cohabitation Gap in Income Pooling: Evidence from 29 European Countries. https://doi.org/10.31235/osf.io/rqzj3 DOI: https://doi.org/10.31235/osf.io/rqzj3
Rešetar, B. (2008). Matrimonial property in Europe: A link between sociology and family law. Electronic journal of comparative law, 12(3), 1-12.
Rhoades, G. K., Stanley, S. M., & Markman, H. J. (2010). Should I stay or should I go? Predicting dating relationship stability from four aspects of commitment. Journal of family psychology, 24(5), 543. DOI: https://doi.org/10.1037/a0021008
Sánchez Gassen, N., & Perelli-Harris, B. (2015). The increase in cohabitation and the role of union status in family policies: A comparison of 12 European countries. Journal of European Social Policy, 25(4), 431-449. DOI: https://doi.org/10.1177/0958928715594561
Siegert, C. (2024). Parenthood and poverty risk within couples: individual and household poverty risks by gender and education in four European countries. European Sociological Review, jcae040. DOI: https://doi.org/10.1093/esr/jcae040
Sobotka, T., & Toulemon, L. (2008). Overview Chapter 4: Changing family and partnership behaviour: Common trends and persistent diversity across Europe. Demographic Research, 19, 85-138. DOI: https://doi.org/10.4054/DemRes.2008.19.6
Stanley, S. M., Whitton, S. W., & Markman, H. J. (2004). Maybe I do: Interpersonal commitment and premarital or nonmarital cohabitation. Journal of Family Issues, 25(4), 496-519. DOI: https://doi.org/10.1177/0192513X03257797
Treas, J. (1993). Money in the bank: Transaction costs and the economic organization of marriage. American sociological review, 723-734. DOI: https://doi.org/10.2307/2096283
Treas, J., Lui, J., & Gubernskaya, Z. (2014). Attitudes on marriage and new relationships: Cross-national evidence on the deinstitutionalization of marriage. Demographic Research, 30, 1495. DOI: https://doi.org/10.4054/DemRes.2014.30.54
Van de Kaa, D. J. (2001). Second Demographic Transition. International Encyclopedia of the Social & Behavioral Sciences, 3486-3488. DOI: https://doi.org/10.1016/B0-08-043076-7/02134-3
Vikat, A., Spéder, Z., Beets, G., Billari, F. C., Bühler, C., Désesquelles, A., Fokkema, T., Hoem, J. M., MacDonald, A., & Neyer, G. (2007). Generations and Gender Survey (GGS) Towards a better understanding of relationships and processes in the life course. Demographic Research, 17, 389-440. DOI: https://doi.org/10.4054/DemRes.2007.17.14
Vitali, A., & Fraboni, R. (2022). Pooling of Wealth in Marriage: The Role of Premarital Cohabitation. European Journal of Population, 38(4), 721-754. DOI: https://doi.org/10.1007/s10680-022-09627-2
Wu, Z., & Schimmele, C. M. (2005). Repartnering after first union disruption. Journal of Marriage and Family, 67(1), 27-36. DOI: https://doi.org/10.1111/j.0022-2445.2005.00003.x
