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Testing for Utility Interdependence in Marriage: Evidence from Panel Data

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  • Powdthavee, Nattavudh

Abstract

This paper is the first of its kind to study utility interdependence in marriage using information on subjective well-being of a large sample of people living in the UK over the period 1991-2001. Using “residual” self-rated health to provide instrument for spouse’s well-being and allowing controls on individual fixed effects, we find strong evidence of altruism represented by interdependent relationships in the reported well-being found only among spouses, and not by partners in cohabiting union. Panel data also show that the well-being impact resulting from “caring” can be used to predict future income, unemployment, and marital status for the individuals.

Suggested Citation

  • Powdthavee, Nattavudh, 2004. "Testing for Utility Interdependence in Marriage: Evidence from Panel Data," Economic Research Papers 269599, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269599
    DOI: 10.22004/ag.econ.269599
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    Cited by:

    1. Guven, Cahit & Senik, Claudia & Stichnoth, Holger, 2012. "You can’t be happier than your wife. Happiness gaps and divorce," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 110-130.
    2. Inmaculada García & José Molina & María Navarro, 2007. "How Satisfied are Spouses with their Leisure Time? Evidence from Europe," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 546-565, December.
    3. Luis Angeles, 2008. "Adaption or social comparison? The effects of income on happiness," Working Papers 2009_09, Business School - Economics, University of Glasgow, revised Jun 2009.

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    More about this item

    Keywords

    Institutional and Behavioral Economics; Labor and Human Capital;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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