This study examines whether unemployment insurance benefit generosity impacts divorce, drawing on full
population administrative data and a Swiss reform that reduced unemployment insurance maximum benefit
duration.We assess the effect of the reform by comparing the pre- to the post-reform change in divorce rates
among unemployed individuals who were affected by the reform with the change in divorce rates among a
statistically balanced group of unemployed individuals who was not affected by the reform. Difference-indifferences
estimates suggest that the reform caused a 2.8 percentage point increase in divorce (a 25%
increase). Effects were concentrated among low-income couples (+58%) and couples with an unemployed
husband (+32%) though gender differences are attributable to men’s breadwinner status. Female main
breadwinners were more strongly affected (+78%) than male main breadwinners (+40%). Results confirm the
‘family stress model’ which posits that job search and financial stress cause marital conflict. Policymakers
should consider a broad array of impacts, including divorce, when considering reductions in unemployment
insurance generosity.