It has been argued that rising dowry payments are caused by population growth. According to that explanation, termed the `marriage squeeze', a population increase leads to an excess supply of brides since men marry younger women. As a result, dowry payments rise in order to clear the marriage market. The explanation is essentially static; unmarried brides do not re-enter the marriage market. This paper demonstrates that the marriage squeeze argument cannot explain dowry inflation in a proper dynamic framework. In fact, when women, who do not find matches at the `desirable' marrying age, re-enter the marriage market as older brides, (as is the case in areas undergoing dowry inflation), the marriage squeeze argument is shown to imply dowry deflation.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
86.
Find related papers by JEL classification: J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination D10 - Microeconomics - - Household Behavior - - - General
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Maristella Botticini & Aloysius Siow, 2003.
"Why Dowries?,"
American Economic Review,
American Economic Association, vol. 93(4), pages 1385-1398, September.
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