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Neither marriage nor a legally enforceable contract serves any useful purpose if the parties have access to a perfect credit market. In the presence of credit rationing, efficiency and utility equalization are guaranteed only by a legally enforceable contract. Separate-property marriage may...
Persistent link: https://www.econbiz.de/10010227229
This paper considers family formation and reciprocity-based cooperation in the form of sharing of earnings-risk. While … risk sharing is one benefit to marriage it is also limited by divorce risk. With search in the marriage market there may be … multiple equilibria diering not only in divorce rates but also in the role of marriage in providing informal insurance …
Persistent link: https://www.econbiz.de/10011399734
Why do some U.S. states have higher levels of marital formation than others? This paper introduces an economic model wherin a state s representative individual may choose to marry in order to diversify his or her idiosyncratic income risk. The paper demonstrates that such a diversification...
Persistent link: https://www.econbiz.de/10011409730
also an increase in both divorce and cohabitation and a decline - albeit non-significant - in the number of marriages …
Persistent link: https://www.econbiz.de/10012652849
We analyze equally competitive spouses competing for promotion in their respective workplaces and show that an asymmetric equilibrium featuring household specialization can arise. Examples where the asymmetric equilibrium is welfare-superior to the symmetric equilibrium are highlighted. By...
Persistent link: https://www.econbiz.de/10013168051
- a 10 percent mandatory top-up in the Minimum Wage (MW) for married individuals - in Greece in November 2012. Using data …
Persistent link: https://www.econbiz.de/10012294574
The paper develops an equilibrium search and matching model where two-person families as well as singles participate in the labor market. We show that equilibrium entails wage dispersion among equally productive risk-averse workers. Marital status as well as spousal labor market status matter...
Persistent link: https://www.econbiz.de/10003935195
Leaving the parental home is often a decision made together by two people. In this paper we present a theoretical model analyzing moving out as a joint decision and then test its implications using a new dataset of university graduates collected in the southern Spanish region of Murcia in...
Persistent link: https://www.econbiz.de/10010528941
We demonstrate that the notion of a "family constitution" (self-enforcing, renegotiation-proof family norm) requiring … family constitutions. …
Persistent link: https://www.econbiz.de/10011488072
households. -- instrumental partner-violence ; non-cooperative family decision-making ; welfare policy …
Persistent link: https://www.econbiz.de/10009388372