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Divorce and the duality of marital payoff

Author

Listed:
  • Pierre–André Chiappori

    (Columbia University)

  • Natalia Radchenko

    (American University)

  • Bernard Salanié

    (Columbia University)

Abstract

Empirical studies on the determinants of divorce are scarce in economics. The literature has focused on the impact of income differentials between partners. We extend the model of marital dissolution to integrate time-varying non-pecuniary quality of the match. We use a unique Russian dataset to measure shocks to the non-economic components of the value of marriage. Our estimates suggest that the monetary and non-monetary components enter additively into marriage surplus, but with gender-specific marginal rates of substitution: divorce hazard is more sensitive to the non-pecuniary dissatisfaction of the wife than to that of the husband; impacts of the monetary components are also gender-specific and highly non-linear. We link these findings to remarriage prospects and partial risk sharing.

Suggested Citation

  • Pierre–André Chiappori & Natalia Radchenko & Bernard Salanié, 2018. "Divorce and the duality of marital payoff," Review of Economics of the Household, Springer, vol. 16(3), pages 833-858, September.
    • Handle: RePEc:kap:reveho:v:16:y:2018:i:3:d:10.1007_s11150-017-9382-0
    DOI: 10.1007/s11150-017-9382-0
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    3. Mikhail Freer & Khushboo Surana, 2021. "Marital Stability With Committed Couples: A Revealed Preference Analysis," Papers 2110.10781, arXiv.org, revised Aug 2023.
    4. Li, Li & Mak, Eric, 2016. "Marriage, Divorce, Remarriage: The Catalyst Effect of Unilateral Divorce," MPRA Paper 83330, University Library of Munich, Germany.
    5. Bünnings, Christian & Hafner, Lucas & Reif, Simon & Tauchmann, Harald, 2021. "In sickness and in health? Health shocks and relationship breakdown: Empirical evidence from Germany," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 164-190.
    6. Laurens Cherchye & Bram De Rock & Frederic Vermeulen & Selma Walther, 2021. "Where did it go wrong? Marriage and divorce in Malawi," Quantitative Economics, Econometric Society, vol. 12(2), pages 505-545, May.
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    9. David Boto‐García & Federico Perali, 2024. "The association between marital locus of control and break‐up intentions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(1), pages 35-57, January.

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