January 23, 2012: Pew Economic Mobility Project Divorce Statistics

By Josh D. Simon

IThe Pew Economic Mobility Project’s looked at changes in Americans’ income patterns over the past 40 years.

The study is far-reaching and covers a lot of territory. The statistics below focus on findings relevant to divorced and divorcing people. For more information, and statistics related to overall population groups, read “Ups and Downs: American’s Prospects for Recovery after an Income Loss”.

Note that the statistics below compare analyzed results from two time periods: the early 2000s and the early 1970s.

• 20% of divorced women will increase their income by at least 25% after divorce, compared to 11% from the early/mid 1970s.
• 16% of divorced men will increase their income by at least 25% after divorce, compared to 2% from the early/mid 1970s.
• The risk of experiencing an income decline of 25% of more within 2 years for women who split from their partners fell from 63% to 49%
• The risk of experiencing an income decline of 25% of more within 2 years for men who split from their partners increased from 30% to 47%
• The incidence of experiencing income growth of 25% or more within 2 years for women who split from their partners increased from 11% to 20%
• The incidence of experiencing income growth of 25% or more within 2 years for men who split from their partners increased from 14% to 16%
• More than 60% of men, and nearly 60% of women, who experienced a long-term income drop and who remained single failed to recover after 10 years
• About 70% of men and women who experienced a long-term income drop recovered within 10 years

In terms of recovery chances for a short-term (2 year) income drop of at least 25% for both men and women, married and divorced:

• 19% recovered financially within 1 year
• 50% recovered financially within 4 years
• 66% recovered financially within 10 years
• 34% did not recover after 10 years

In terms of recovery chances after a long-term (10+ years) income drop of at least 25% for both men and women, married and divorced:

• 14% recovered within 1 year.
• 31% recovered within 4 years
• 51% recovered within 10 years
• 49% did not recover after 10 years
• Recovery from a 10-year income drop was experienced most often by college graduates and couples living together

About the Economic Mobility Project:

By forging a broad and nonpartisan agreement on the facts, figures, and trends related to mobility, the Economic Mobility Project is generating an active policy debate about how best to improve economic opportunity in the United States and to ensure that the American Dream is kept alive for generations that follow. For more information, visit www.economicmobility.org.

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