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Divorce, Remarriage, and Welfare: A General Equilibrium Approach

Author

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  • Pierre-Andre Chiappori
  • Yoram Weiss

Abstract

Modern marriage markets display increasing turnover, with less marriage but more divorce and remarriage. As a consequence, a large number of children live in single-parent and step-parent households. We summarize here a general equilibrium approach that allows welfare evaluations. In the absence of children, we show that higher aggregate divorce may raise welfare, because it facilitates remarriage. Even children may be better off in a high divorce-remarriage environment, because of stronger incentives for fathers to transfer money to the custodial mothers. (JEL: J1, J12, J13, K1, K10) (c) 2006 by the European Economic Association.

Suggested Citation

  • Pierre-Andre Chiappori & Yoram Weiss, 2006. "Divorce, Remarriage, and Welfare: A General Equilibrium Approach," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 415-426, 04-05.
  • Handle: RePEc:tpr:jeurec:v:4:y:2006:i:2-3:p:415-426
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    Citations

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    Cited by:

    1. David De La Croix & Fabio Mariani, 2015. "From Polygyny to Serial Monogamy: A Unified Theory of Marriage Institutions," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 565-607.
    2. Kai A. Konrad & Kjell Erik Lommerud, 2010. "Love and taxes - and matching institutions," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 919-940, August.
    3. Nicolas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01073728, HAL.
    4. repec:hal:journl:halshs-00639313 is not listed on IDEAS
    5. Amy Farmer & Andrew Horowitz, 2015. "Strategic non-marital cohabitation: theory and empirical implications," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(1), pages 219-237, January.
    6. Christian Bredemeier & Falko Jüßen, 2009. "Household Labor Supply and Home Services in a General-Equilibrium Model with Heterogeneous Agents," Ruhr Economic Papers 0091, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    7. Ariel Kalil & Magne Mogstad & Mari Rege & Mark Votruba, 2011. "Divorced Fathers’ Proximity and Children’s Long-Run Outcomes: Evidence From Norwegian Registry Data," Demography, Springer;Population Association of America (PAA), vol. 48(3), pages 1005-1027, August.
    8. John Knowles & John Kennes, 2011. "Marriage, Fertility and Step-Families: An Equilibrium Analysis," 2011 Meeting Papers 227, Society for Economic Dynamics.
    9. Chiappori, Pierre-André & Iyigun, Murat & Weiss, Yoram, 2008. "An Assignment Model with Divorce and Remarriage," IZA Discussion Papers 3892, Institute for the Study of Labor (IZA).
    10. Bredemeier, Christian & Juessen, Falko, 2009. "Household Labor Supply and Home Services in a General-Equilibrium Model with Heterogeneous Agents," IZA Discussion Papers 3944, Institute for the Study of Labor (IZA).
    11. Michael Malcolm, 2012. "A noncooperative marriage model with remarriage," Review of Economics of the Household, Springer, vol. 10(1), pages 133-151, March.
    12. Bac, Mehmet, 2016. "The expectation effect of a fall in divorce costs," International Review of Law and Economics, Elsevier, vol. 47(C), pages 41-47.
    13. Francesconi, Marco & Rainer, Helmut & van der Klaauw, Wilbert, 2008. "Unintended Consequences of Welfare Reform: The Case of Divorced Parents," IZA Discussion Papers 3891, Institute for the Study of Labor (IZA).
    14. Coles, Melvyn & Francesconi, Marco, 2007. "On the Emergence of Toyboys: Equilibrium Matching with Ageing and Uncertain Careers," IZA Discussion Papers 2612, Institute for the Study of Labor (IZA).
    15. Christian Bredemeier & Falko Juessen, 2013. "Assortative Mating and Female Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 603-631.
    16. Edlund, Lena & Ku, Hyejin, 2011. "The African Slave Trade and the Curious Case of General Polygyny," MPRA Paper 52735, University Library of Munich, Germany, revised 16 Dec 2013.
    17. 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.
    18. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j00420pk7 is not listed on IDEAS
    19. Todd Kendall, 2011. "The Relationship Between Internet Access and Divorce Rate," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 449-460, September.
    20. repec:zbw:rwirep:0091 is not listed on IDEAS

    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • K1 - Law and Economics - - Basic Areas of Law
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

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