Marriage and the Economy: Theory and Evidence from Advanced Industrial Societies

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Dedication......Page 7
Contents......Page 9
Figures......Page 11
Tables......Page 12
Contributors......Page 15
Foreword......Page 21
Acknowledgments......Page 23
ONE Marriage and theEconomy......Page 27
MICROECONOMIC THEORETICAL TOOLS......Page 28
Reactions to the Microeconomics of Marriage......Page 29
MARRIAGE MARKETS AND THE ECONOMY......Page 31
Individual Supply of Work-in-Marriage......Page 32
The Market for Work-in-Marriage......Page 36
Marriage Markets and the Monetized Economy......Page 41
The Economics of Marriage and Divorce......Page 44
Effects of Marriage on Income Uses......Page 45
Effects of Marriage on Time Uses......Page 47
Marriage and the Macroeconomy......Page 49
Implications for Policy......Page 50
Implications for Firms......Page 53
Broader Implications......Page 54
IN CONCLUSION......Page 56
REFERENCES......Page 57
PART I\r THE ECONOMICS OF MARRIAGE AND DIVORCE......Page 61
TWO The Economics of Marriage and Household Formation......Page 63
Delayed Marriage......Page 64
Rise in Non-Marital Cohabitation......Page 66
Changes in Fertility Behavior......Page 67
Crosscultural Variation......Page 68
ECONOMIC DETERMINANTS OF MARRIAGE......Page 69
EMPIRICAL MODELS OF MARRIAGE......Page 73
MARRIAGE AND RELATED BEHAVIORS......Page 75
REFERENCES......Page 77
THREE The Economics of Divorce......Page 81
GAINS FROM MARRIAGE AND THE PROCESS OF MARITAL SEARCH......Page 82
Characteristics of the Spouses and Their Match......Page 83
Investments in Marriage-Specific Human Capital......Page 87
Behaviors of the Partners before the Marriage......Page 92
Differences between First Marriages and Remarriages......Page 94
CONCLUDING REMARKS......Page 96
REFERENCES......Page 97
FOUR The Effects of Public Policy on Marital Status in the United States......Page 101
Disincentives for Marriage in the Structure of the U.S. Welfare System......Page 102
Has Welfare Affected Marriage Behavior?......Page 104
INCOME TAXES AND MARITAL DECISIONS......Page 108
Tax Incentives and Marriage and Divorce Decisions......Page 112
NO-FAULT DIVORCE AND MARITAL CHOICES......Page 113
The Move from Mutual to Unilateral to No-Fault Divorce......Page 116
CONCLUSIONS......Page 121
REFERENCES......Page 124
PART II EFFECTS OF MARRIAGE ON INCOME USES......Page 129
FIVE Control over Money in Marriage......Page 131
WHAT DO ECONOMISTS KNOW?......Page 134
HOW FAMILIES MANAGE THEIR MONEY......Page 136
Material Equality?......Page 140
Determinants of Male and Female Control......Page 145
REFERENCES......Page 152
SIX Marriage, Assets, and Savings......Page 155
THEORETICAL CONSIDERATIONS......Page 156
WEALTH DIFFERENCES ACROSS HOUSEHOLD TYPES......Page 159
HOUSEHOLD STRUCTURE AND SAVINGS BEHAVIOR......Page 165
A MULTIVARIATE MODEL OF HOUSEHOLD SAVINGS......Page 169
REFERENCES......Page 177
SEVEN The Economics of Child Support......Page 179
AN OVERVIEW OF CHILD SUPPORT TODAY......Page 181
TRENDS OVER TIME IN CHILD-SUPPORT PAYMENTS......Page 183
CURRENT ISSUES IN IMPROVING CHILD-SUPPORT OUTCOMES......Page 187
Economic Well-Being of Custodial Mothers and Children......Page 190
The Mother’s Behavior......Page 192
The Father’s Behavior......Page 193
Empirical Findings......Page 197
SUMMARY AND CONCLUSIONS......Page 198
REFERENCES......Page 199
EIGHT Marriage Prospects and Welfare Use......Page 203
Data on Welfare Entry and Exits......Page 204
Conceptual Framework......Page 206
Spouse Availability Affects Marriage Rates......Page 207
STATE-LEVEL SPOUSE AVAILABILITY AND WELFARE USE......Page 209
Hazard Model......Page 212
Modeling Welfare Durations......Page 213
Variable Definitions......Page 214
Results......Page 215
Separate Black and White Models......Page 218
CONCLUSION......Page 219
APPENDIX......Page 220
REFERENCES......Page 221
PART III EFFECTS OF MARRIAGE ON TIME USES......Page 225
NINE  Marriage, Household Production, and Earnings......Page 227
WHO DOES THE HOUSEWORK: THEORY......Page 228
THE EFFECT OF HOUSEWORK TIME ON EARNINGS......Page 233
THE EFFECT OF HOUSEWORK SPECIALIZATION ON THE HUSBAND’S EARNINGS......Page 234
HOUSEWORK, TAXATION, AND EMPLOYEE BENEFITS......Page 235
THE VALUE OF HOUSEWORK IN DIVORCE OR DEATH......Page 237
VALUING HOME PRODUCTION......Page 238
THE LORNA WENDT AND GARY WENDT DIVORCE CASE......Page 240
SUMMARY AND CONCLUDING REMARKS......Page 244
REFERENCES......Page 246
TEN Marriage and Work for Pay......Page 248
Employment Rates......Page 249
Earnings......Page 260
Fixed-Effects Models Based on Panel Data......Page 264
Marriage Market Econometric Models......Page 266
CONCLUSIONS......Page 269
REFERENCES......Page 270
ELEVEN Marriage, Work for Pay, and Childcare......Page 274
Modeling Childcare/Work for Pay Choices of All Parents......Page 276
Modeling theType of Third-Party Childcare Chosen......Page 278
Differences in Childcare/Employment Choices between Married and Single Parents......Page 279
Resulting Differences in Paid Childcare Use from Changing the Price of Childcare......Page 282
Resulting Difference in Employment from Changing the Price of Childcare......Page 283
Differences in Employment Status......Page 284
Differences in Use of Non-Maternal Childcare......Page 287
Differences in Percentage of Family Income Spent on Childcare......Page 289
Differences in the Responsiveness of Childcare Use and Employment to Changes in the Price of Childcare: Results from…......Page 290
CONCLUSIONS......Page 293
REFERENCES......Page 294
TWELVE Marriage and Home-Based Paid Employment......Page 297
BACKGROUND......Page 299
AN ECONOMIC MODEL OF CHOICE OF WORK SITE......Page 302
WHAT DO THE DATA SHOW?......Page 305
CONCLUSIONS......Page 312
APPENDIX......Page 314
REFERENCES......Page 315
PART IV MARRIAGE AND THE MACROECONOMY......Page 317
THIRTEEN Married Households and Gross Household Product......Page 319
MARRIED AND UNMARRIED HOUSEHOLDS DEFINED......Page 320
LIFE STAGE HOUSEHOLDS......Page 321
MOVEMENT THROUGH LIFE STAGE HOUSEHOLDS......Page 323
COMPARATIVE CONTRIBUTIONS OF WOMEN AND MEN OVER LIFE STAGE HOUSEHOLDS......Page 326
Work in Younger Households without Children: Life Stage A, Twenties......Page 327
Work by Adults in Children Households: Life Stage B, Thirties and Forties......Page 329
Work by Older Households without Children: Life Stage D, Sixties Plus......Page 331
NATIONAL ACCOUNTS OF HOUSEHOLD PRODUCTION......Page 332
NEW ESTIMATES OF AUSTRALIAN HOUSEHOLD PRODUCTION......Page 334
CONTRIBUTION OF MARRIED HOUSEHOLDS TO HOUSEHOLD PRODUCTION......Page 336
HOUSEHOLD PRODUCTION INCOME AND EXTENDED INCOME......Page 338
SUMMARY AND CONCLUSION......Page 341
REFERENCES......Page 342
FOURTEEN Marriage, Parental Investment, and the Macroeconomy......Page 344
A Rhetorical Problem......Page 345
The Family Business......Page 346
The Role of Parental Cooperation......Page 351
Marital Partnership and the Legal Infrastructure......Page 355
MARITAL PARTNERSHIP IN MACROECONOMIC MODELS:\r READING BETWEEN THE LINES......Page 356
INTRODUCING MARRIAGE TO MACROECONOMICS......Page 359
REFERENCES......Page 363
Index......Page 365