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"Living in sin" and marriage: A matching model

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Author Info

  • Xinhua Gu

    ()
    (Department of Economics, University of Toronto, Toronto, Canada. Fax: +1-416-978-6713; e-mail: xinhuagu@chass.utoronto.ca)

  • Padma Rao Sahib

    ()
    (SOM Research School and Population Research Centre, University of Groningen, PO Box 800, 9700 AV Groningen, The Netherlands)

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    Abstract

    This paper develops a two sided matching model of premarital cohabitation and marriage in which premarital cohabitation serves as a period of learning. We solve for the optimal policy to be followed by individuals by treating the model as a three stage dynamic programming problem. We find that couples are more discriminating when forming marital unions than when forming cohabiting unions. Cohabitation unions arise among members of the same "class" and there is overlap between the classes formed by marital unions and cohabiting unions. This implies that some cohabiting unions progress to marriage while others do not, a finding borne out by empirical studies.

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    File URL: http://link.springer.de/link/service/journals/00148/papers/2015002/20150261.pdf
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    Bibliographic Info

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

    Volume (Year): 15 (2002)
    Issue (Month): 2 ()
    Pages: 261-282

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    Handle: RePEc:spr:jopoec:v:15:y:2002:i:2:p:261-282

    Note: Received: 4 November 1999/Accepted: 4 September 2000
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    Related research

    Keywords: Cohabitation · marriage · matching;

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    Cited by:
    1. Peter Thompson, 2005. "Desperate Housewives? Communication Difficulties and the Dynamics of Marital (un)Happiness," Working Papers 0515, Florida International University, Department of Economics, revised Jan 2006.

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