The Impact of Marriage and Cohabitation on Financial Distress: Evidence from SHARE 2015 to 2022 for 16 European Countries

In this article, the relevance of the known economic benefits of marriage and cohabitation is reconfirmed. Based on data from the Survey of Health, Ageing and Retirement in Europe (SHARE) of the period 2015 to 2022 and 16 European countries, the severity of financial distress is explained by relational, health, financial, as well as general characteristics. The study reveals that singles are less likely to report greater easiness to make financial ends meet. Furthermore, income and employment appear to enable overcoming financial distress, while liabilities and reduced health facilitate financial distress. From all countries, Swedes and Danes report greater easiness to make ends meet. Econometrically, the study relies on ordered and non-ordered, panel and non-panel logistic estimators, which implement, if required, the Mundlak correction and/or calibrated longitudinal weights. Overall, the study illustrates that partnership relieves financial distress.