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An Investment-and-Marriage Model with Differential Fecundity

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  • Hanzhe Zhang

Abstract

I build an equilibrium investment-and-marriage model 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 a theoretical 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, as well as 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

  • Hanzhe Zhang, 2019. "An Investment-and-Marriage Model with Differential Fecundity," CESifo Working Paper Series 7872, CESifo.
    • Handle: RePEc:ces:ceswps:_7872
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    Cited by:

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    2. Zhang, Hanzhe, 2020. "Pre-matching gambles," Games and Economic Behavior, Elsevier, vol. 121(C), pages 76-89.

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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
    • D10 - Microeconomics - - Household Behavior - - - General

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