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Fortunate Families? The Effects of Wealth on Marriage and Fertility

Author

Listed:
  • Lindqvist, Erik
  • Cesarini, David
  • Östling, Robert
  • Terskaya, Anastasia

Abstract

We estimate the effects of large, positive wealth shocks on marriage and fertility in a sample of Swedish lottery players. For male winners, wealth increases marriage formation and reduces divorce risk, suggesting wealth increases men’s attractiveness as prospective and current partners. Wealth also increases male fertility. The only discernible effect on female winners is that wealth increases their short-run (but not long-run) divorce risk. Our results for divorce are consistent with a model where the wealthier spouse retains most of his/her wealth in divorce. In support of this assumption, we show divorce settlements in Sweden often favor the richer spouse.

Suggested Citation

  • Lindqvist, Erik & Cesarini, David & Östling, Robert & Terskaya, Anastasia, 2023. "Fortunate Families? The Effects of Wealth on Marriage and Fertility," CEPR Discussion Papers 18000, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18000
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    Keywords

    Fertility; Children; Marriage; Divorce;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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