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Waiting for Mr Right: Rising Inequality and Declining Marriage Rates

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  • Gould, Eric D
  • Paserman, M. Daniele

Abstract

This Paper demonstrates that women search longer for their first or second husband in cities with higher male wage inequality, and analyses several explanations for this result. A causal link is established by showing that the results are robust to the inclusion of city fixed-effects and city-specific time trends, and by using inequality in the woman’s state of birth as a proxy for the local level of male inequality. Increasing male inequality explains about 30% of the marriage rate decline for women over the last few decades, and we show that this is not due to the effects of male inequality on female inequality, female labour supply, or decisions by women to re-locate, nor to the decisions of men in reaction to changes in their own wages. The evidence supports the idea that higher male inequality increases the option value for single women to search longer for a husband.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3388.

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Date of creation: May 2002
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Handle: RePEc:cpr:ceprdp:3388
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Keywords: inequality; marriage; search;

Other versions of this item:

Find related papers by JEL classification:
  • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
  • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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