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The effect of divorce costs on marriage formation and dissolution

Author

Listed:
  • Spiros Bougheas

    (Division of Economics, Staffordshire University, Stoke-on-Trent, Staffordshire ST4 2DF, UK)

  • Yannis Georgellis

    (Department of Economics and Finance, Brunel University, Uxbridge, Middlesex UB8 3PH, UK)

Abstract

Exploiting the theoretical parallels between the matching of workers to jobs in the labour market and the matching of individuals in the marriage market, we use a search theoretic model of marriage formation and dissolution to examine the effect of divorce costs on both decisions. By introducing learning at both stages of the marital decision process, we show that divorce costs not only affect the probability of divorce but also the probability of marriage. Interestingly, to what extent divorce costs affect the marital status distribution depends on the information regarding the quality of the potential marriage that individuals receive while encountering marital offers.

Suggested Citation

  • Spiros Bougheas & Yannis Georgellis, 1999. "The effect of divorce costs on marriage formation and dissolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 489-498.
    • Handle: RePEc:spr:jopoec:v:12:y:1999:i:3:p:489-498
    Note: Received: 30 July 1996/Accepted: 7 December 1998
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    Citations

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    Cited by:

    1. Jonathan Gruber, 2000. "Is Making Divorce Easier Bad for Children? The Long Run Implications of Unilateral Divorce," NBER Working Papers 7968, National Bureau of Economic Research, Inc.
    2. Valerio Filoso, 2009. "Divorce And The Option Value Of Marital Search," Metroeconomica, Wiley Blackwell, vol. 60(1), pages 119-149, February.
    3. Andrew Grant & Steve Satchell, 2019. "Endogenous divorce risk and investment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 845-876, July.
    4. Peter Thompson, 2008. "Desperate Housewives? Communication Difficulties and the Dynamics of Marital (un)Happiness," Economic Journal, Royal Economic Society, vol. 118(532), pages 1640-1669, October.
    5. Zvika Neeman & Andrew F. Newman & Claudia Olivetti, 2008. "Are Career Women Good for Marriage?," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-167, Boston University - Department of Economics.
    6. Jeffrey Dew & Joseph Price, 2011. "Beyond Employment and Income: The Association Between Young Adults’ Finances and Marital Timing," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 424-436, September.
    7. Ismail Saglam, 2013. "Divorce Costs and Marital Dissolution in a One-to-One Matching Framework With Nontransferable Utilities," Games, MDPI, vol. 4(1), pages 1-19, March.
    8. PARISI, Lavinia, 2012. "The Determinants of First and Second Marital Dissolution. Evidence from Britain," CELPE Discussion Papers 121, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    9. Mumcu, Ayse & Saglam, Ismail, 2006. "Marriage and Divorce in a Model of Matching," MPRA Paper 1907, University Library of Munich, Germany.
    10. Jessamyn Schaller, 2013. "For richer, if not for poorer? Marriage and divorce over the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1007-1033, July.
    11. Jonathan Gruber, 2004. "Is Making Divorce Easier Bad for Children? The Long-Run Implications of Unilateral Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 799-834, October.
    12. Ayse Mumcu & Ismail Saglam, 2008. "Marriage Formation/Dissolution and Marital Distribution in a Two-Period Economic Model of Matching with Cooperative Bargaining," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 11(4), pages 1-3.

    More about this item

    Keywords

    Marriage · divorce costs · search;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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