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The effect of divorce costs on marriage formation and dissolution

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  • Spiros Bougheas

    ()
    (Division of Economics, Staffordshire University, Stoke-on-Trent, Staffordshire ST4 2DF, UK)

  • Yannis Georgellis

    ()
    (Department of Economics and Finance, Brunel University, Uxbridge, Middlesex UB8 3PH, UK)

Abstract

Exploiting the theoretical parallels between the matching of workers to jobs in the labour market and the matching of individuals in the marriage market, we use a search theoretic model of marriage formation and dissolution to examine the effect of divorce costs on both decisions. By introducing learning at both stages of the marital decision process, we show that divorce costs not only affect the probability of divorce but also the probability of marriage. Interestingly, to what extent divorce costs affect the marital status distribution depends on the information regarding the quality of the potential marriage that individuals receive while encountering marital offers.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 12 (1999)
Issue (Month): 3 ()
Pages: 489-498

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Handle: RePEc:spr:jopoec:v:12:y:1999:i:3:p:489-498

Note: Received: 30 July 1996/Accepted: 7 December 1998
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Keywords: Marriage · divorce costs · search;

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Cited by:
  1. Saglam, Ismail, 2011. "Divorce costs and marital dissolution in a one-to-one matching framework with nontransferable utilities," MPRA Paper 33841, University Library of Munich, Germany.
  2. Audrey Light & Yoshiaki Omori, 2009. "Economic Incentives and Family Formation," Working Papers 09-08, Ohio State University, Department of Economics.
  3. Zvika Neeman & Andrew F. Newman & Claudia Olivetti, 2008. "Are Career Women Good for Marriage?," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-167, Boston University - Department of Economics.
  4. Rao Sahib, P. Padma & Gu, X. Xinhua, 1999. ""Living in sin" and marriage: a matching model," Research Report 99D57, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  5. Jessamyn Schaller, 2013. "For richer, if not for poorer? Marriage and divorce over the business cycle," Journal of Population Economics, Springer, vol. 26(3), pages 1007-1033, July.
  6. PARISI, Lavinia, 2012. "The Determinants of First and Second Marital Dissolution. Evidence from Britain," CELPE Discussion Papers 121, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  7. Mumcu, Ayse & Saglam, Ismail, 2006. "Marriage and Divorce in a Model of Matching," MPRA Paper 1907, University Library of Munich, Germany.
  8. Audrey Light & Yoshiaki Omori, 2012. "Can Long-Term Cohabiting and Marital Unions be Incentivized?," Working Papers 12-01, Ohio State University, Department of Economics.
  9. Jeffrey Dew & Joseph Price, 2011. "Beyond Employment and Income: The Association Between Young Adults’ Finances and Marital Timing," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 424-436, September.
  10. Jonathan Gruber, 2000. "Is Making Divorce Easier Bad for Children? The Long Run Implications of Unilateral Divorce," NBER Working Papers 7968, National Bureau of Economic Research, Inc.

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