AbstractIs moving to the countryside a credible commitment device for couples? We investigate whether lowering the arrival rate of potential alternative partners by moving to a less populated area lowers the dissolution risk for a sample of Danish couples. We find that of the couples who married in the city, the ones who stay in the city have significant higher divorce rates. Similarly, for the couples who married outside the city, the ones who move to the city are more likely to divorce. This correlation can be explained by both a causal and a sorting effect. We disentangle them by using the timing-of-events approach. In addition we use information on father's location as an instrument. We find that the sorting effect dominates. Moving to the countryside is therefore not a cheap way to prolong relationships.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2007-01.
Date of creation: 13 Feb 2007
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Dissolution; search; mobility; city;
Other versions of this item:
- Gautier, Pieter A & Svarer, Michael & Teulings, Coen N, 2007. "Sin City?," CEPR Discussion Papers 6170, C.E.P.R. Discussion Papers.
- Gautier, Pieter & Svarer, Michael & Teulings, Coen, 2007. "Sin City?," IZA Discussion Papers 2632, Institute for the Study of Labor (IZA).
- Pieter A. Gautier & Michael Svarer & Coen N. Teulings, 2007. "Sin City?," CAM Working Papers 2007-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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