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This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk. Symmetry in education (both spouses receive an equal...
Persistent link: https://www.econbiz.de/10013096466
should be differences in tax treatment between "female" and "male" products. When weights (as well as wages) differ across … case, when the weight of the female spouse increases with wages, the female good tends to be consumed in larger proportion …
Persistent link: https://www.econbiz.de/10012962286
wages are equal and when parents' initial wealth levels are not too different. For very large wealth differences the … mechanism must be supplemented by a (mandatory) transfer that brings them back into the relevant range. When wages differ but …
Persistent link: https://www.econbiz.de/10013057897