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 … symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor …

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 … symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor …

with foreign suppliers under two contractual modes: rigid and flexible. If suppliers consider original contracts as … less egalitarian ones. -- foreign direct investment ; cross-country cultural differences ; egalitarianism ; risk … ; contracts as reference points ; haggling ; contractual rigidity vs. flexibility …