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Transitions from home to marriage of young Americans

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Author Info

  • Arnstein Aassve

    (Max Planck Institute for Demographic Research, Doberaner Str. 114, 18057 Rostock, Germany)

  • Simon Burgess

    (Department of Economics, University of Bristol, 8 Woodland Road, BS8 1TN Bristol, UK, CASE and CEPR)

  • Andrew Chesher

    (Department of Economics, University College London, Gower Street, WC1E 6BT London, UK)

  • Carol Propper

    (Department of Economics, University of Bristol, 8 Woodland Road, BS8 1TN Bristol, UK, CASE and CEPR)

Abstract

The paper examines the impact of income on the transitions between home, living independently and first marriage of young Americans. A matching model is outlined, similar to that used in theories of job search, to explain the probability of marriage and living alone. A multiple-state, multiple-transition model which allows for correlated heterogeneity on the first and subsequent transitions is estimated. The results show that income has a strong and significant effect. The impact of unobserved heterogeneity is examined in detail. The impact of the young person's earnings on the transitions is explored through simulation. Copyright © 2002 John Wiley & Sons, Ltd.

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File URL: http://qed.econ.queensu.ca:80/jae/2002-v17.1/
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 17 (2002)
Issue (Month): 1 ()
Pages: 1-23

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Handle: RePEc:jae:japmet:v:17:y:2002:i:1:p:1-23

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  1. Nancy Cole & Janet Currie, 1994. "Reported Income in the NLSY: Consistency Checks and Methods for Cleaningthe Data," NBER Technical Working Papers 0160, National Bureau of Economic Research, Inc.
  2. Haurin, Donald R & Hendershott, Patric H & Kim, Dongwook, 1993. "The Impact of Real Rents and Wages on Household Formation," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 284-93, May.
  3. Moffitt, Robert, 1990. "The effect of the U.S. welfare system on marital status," Journal of Public Economics, Elsevier, vol. 41(1), pages 101-124, February.
  4. Burdett, Kenneth & Vishwanath, Tara, 1988. "Declining Reservation Wages and Learning," Review of Economic Studies, Wiley Blackwell, vol. 55(4), pages 655-65, October.
  5. Akerlof, George A & Yellen, Janet L & Katz, Michael L, 1996. "An Analysis of Out-of-Wedlock Childbearing in the United States," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 277-317, May.
  6. Newman, John L & McCulloch, Charles E, 1984. "A Hazard Rate Approach to the Timing of Births," Econometrica, Econometric Society, vol. 52(4), pages 939-61, July.
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