Economic Analysis of Divorce: Exploring the relationship between unemployment and divorce in Iran during 1345 -1385

This paper studies the relationships between through four theoretical approaches: psychological stress, the cost of divorce, and combined and individual liability (selection) ones. We analyzed data of forty years from 1966 to 2006 to study how the unemployment and the divorce rate related in Iran by using time series analysis. The results show that there is a long-run relationship between divorce and unemployment but not for short-run one. This supports the psychological stress perspective which emphasizes on the lag effect on unemployment on divorce.