Is 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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Pieter A. Gautier & Michael Svarer & Coen N. Teulings, 2007.
"Sin City,"
IZA Discussion Papers
2632, Institute for the Study of Labor (IZA).
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Gautier, Pieter A & Svarer, Michael & Teulings, Coen N, 2007.
"Sin City?,"
CEPR Discussion Papers
6170, C.E.P.R. Discussion Papers.
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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.
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Pieter A. Gautier & Michael Svarer & Coen N. Teulings, 2007.
"Sin City?,"
Economics Working Papers
2007-01, School of Economics and Management, University of Aarhus.
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Find related papers by JEL classification: 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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Gautier, Pieter A & Svarer, Michael & Teulings, Coen N, 2005.
"Marriage and the City,"
CEPR Discussion Papers
4939, C.E.P.R. Discussion Papers.
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Other versions:
Pieter Gautier & Michael Svarer & Coen Teulings, 2005.
"Marriage and the City,"
CAM Working Papers
2005-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
[Downloadable!]
Gautier, Pieter A. & Svarer, Michael & Teulings, Coen N., 2005.
"Marriage and the City,"
IZA Discussion Papers
1491, Institute for the Study of Labor (IZA).
[Downloadable!]