Risk Sharing and On-the-Marriage Search
Much attention has been paid to the high divorce rate, but less recognized is the frequency of remarriage. To the extent that marriage provides consumption insurance, this prompts re-examination of the gains to marriage in terms of risk sharing. This paper shows that existing models of marriage with risk sharing and limited commitment cannot explain the rate and speed at which divorcees remarry. Introducing on-the-marriage search allows simulations to match the rates seen in the data.
Year of publication: |
2014
|
---|---|
Authors: | Turner, Laura ; Devereux, Kevin |
Institutions: | Society for Economic Dynamics - SED |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Household Responses to Individual Shocks: Disability, Labour Supply
Turner, Laura, (2010)
-
It's Not Me, It's You: Social Skills and Human Capital in the Labor and Marriage Markets
Turner, Laura, (2013)
-
Relationship Skills in the Labor and Marriage Markets
Turner, Laura, (2014)
- More ...