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An Investment-and-Marriage Model with Differential Fecundity

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  • Zhang, Hanzhe

    (Michigan State University, Department of Economics)

Abstract

I build an equilibrium investment-and-marriage model with differential fecundity to explain stylized facts about education, income, and marriage for Americans born in the twentieth century that had not been explained in a unified way. The most novel finding is an explanation for why women attend college at a higher rate and earn a lower average income than men. Differential fecundity and an equilibrium marriage market form the basis of my explanation. The model also accounts for gender-specific relationships between age at marriage and income, and the evolving relationship between age at marriage and spousal income for women. I provide evidence to support my theory and calibrate the model to conduct counterfactual analyses.

Suggested Citation

  • Zhang, Hanzhe, 2019. "An Investment-and-Marriage Model with Differential Fecundity," Working Papers 2019-11, Michigan State University, Department of Economics.
    • Handle: RePEc:ris:msuecw:2019_011
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    Cited by:

    1. He, Simin & Wu, Jiabin & Zhang, Hanzhe, 2021. "Experimental and Noncooperative Analyses of Decentralized Matching with Transfers," Working Papers 2021-2, Michigan State University, Department of Economics.
    2. Gershoni, Naomi & Low, Corinne, 2021. "The power of time: The impact of free IVF on Women’s human capital investments," European Economic Review, Elsevier, vol. 133(C).
    3. Chuan, Amanda & Zhang, Weilong, 2023. "Non-college Occupations, Workplace Routinization, and the Gender Gap in College Enrollment," IZA Discussion Papers 16089, Institute of Labor Economics (IZA).
    4. Geghetsik Afunts & Stepan Jurajda, 2022. "Who Divorces Whom: Unilateral Divorce Legislation and the Educational Structure of Marriage," CERGE-EI Working Papers wp740, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Zhang, Hanzhe & Zou, Ben, 2023. "A marriage-market perspective on risk-taking and career choices," European Economic Review, Elsevier, vol. 152(C).
    6. Zhang, Hanzhe, 2020. "Pre-matching gambles," Games and Economic Behavior, Elsevier, vol. 121(C), pages 76-89.
    7. Zhou Kit, 2023. "Choosing Sides in a Two-Sided Matching Market," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 23(2), pages 781-807, June.
    8. Zhang, Hanzhe, 2020. "A Marriage-Market Perspective on Risk-Taking and Career Choices: Theory and Evidence," Working Papers 2020-2, Michigan State University, Department of Economics.
    9. Koh, Yumi & Li, Jing & Wu, Yifan & Yi, Junjian & Zhang, Hanzhe, 2023. "Young Women in Cities," IZA Discussion Papers 16353, Institute of Labor Economics (IZA).
    10. Wu, Jiabin & Zhang, Hanzhe, 2021. "Preference evolution in different matching markets," European Economic Review, Elsevier, vol. 137(C).
    11. Chuan, A. & Zhang, W., 2021. "Non-College Occupations, Workplace Routinization, and the Gender Gap in College Enrollment," Cambridge Working Papers in Economics 2177, Faculty of Economics, University of Cambridge.
    12. Zhang, Lin, 2022. "Age matters for girls: School entry age and female graduate education," Economics of Education Review, Elsevier, vol. 86(C).
    13. Dan Anderberg & Jesper Bagger & V. Bhaskar & Tanya Wilson, 2022. "Marriage market equilibrium with matching on latent ability: Identification using a compulsory schooling expansion," Working Papers 2022_11, Business School - Economics, University of Glasgow.

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    More about this item

    Keywords

    college gender gap; earnings gender gap; marriage age; nonassortative matching;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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