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"Living in sin" and marriage: a matching model

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  • Rao Sahib, P. Padma
  • Gu, X. Xinhua

    (Groningen University)

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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. Keywords: cohabitation, marriage, matching, assortative mating. JEL classification: D83; D84; J12.

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    File URL: http://irs.ub.rug.nl/ppn/190864176
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    Bibliographic Info

    Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 99D57.

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    Date of creation: 1999
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    Handle: RePEc:dgr:rugsom:99d57

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    1. Zheng Wu & T. Balakrishnan, 1995. "Dissolution of premarital cohabitation in Canada," Demography, Springer, vol. 32(4), pages 521-532, November.
    2. T. Balakrishnan & K. Rao & Evelyne Lapierre-Adamcyk & Karol Krotki, 1987. "A Hazard Model Analysis Of The Covariates Of Marriage Dissolution In Canada," Demography, Springer, vol. 24(3), pages 395-406, August.
    3. Spiros Bougheas & Yannis Georgellis, 1999. "The effect of divorce costs on marriage formation and dissolution," Journal of Population Economics, Springer, vol. 12(3), pages 489-498.
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