The dynamics of divorce, income, and female labor force participation in Singapore

Singapore has experienced rising income and female labor force participation over the years. This growth, however, is also accompanied by increasing divorce rate. This paper utilizes Granger causality tests within a multivariate error correction framework to examine the short-run and long-run causal interactions among divorce, income and female labor force participation in Singapore. The long-run results suggest the presence of tradeoffs between income, female labor participation and the family unit, with the twin objectives of economic expansion and the move to draw more women into the labor market having a negative impact on the institution of marriage.