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Fortunate Families? The Effects of Wealth on Marriage and Fertility

Author

Listed:
  • Cesarini, David

    (Department of Economics, New York University)

  • Lindqvist, Erik

    (Swedish Institute for Social Research, Stockholm University)

  • Östling, Robert

    (Department of Economics, Stockholm School of Economics)

  • Terksaya, Anastasia

    (Department of Economics and IEB, Universidad de Barcelona)

Abstract

We estimate the effects of large, positive wealth shocks on marriage and fertility in a sample of Swedish lottery players. For male winners, wealth increases marriage formation and reduces divorce risk, suggesting wealth increases men’s attractiveness as prospective and current partners. Wealth also increases male fertility. The only discernible effect on female winners is that wealth increases their short-run (but not long-run) divorce risk. Our results for divorce are consistent with a model where the wealthier spouse retains most of his/her wealth in divorce. In support of this assumption, we show divorce settlements in Sweden often favor the richer spouse.

Suggested Citation

  • Cesarini, David & Lindqvist, Erik & Östling, Robert & Terksaya, Anastasia, 2024. "Fortunate Families? The Effects of Wealth on Marriage and Fertility," Working Paper Series 4/2023, Stockholm University, Swedish Institute for Social Research.
    • Handle: RePEc:hhs:sofiwp:2023_004
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    References listed on IDEAS

    as
    1. Anderson, Michael L, 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
    3. Yung-Yu Tsai & Hsing-Wen Han & Kuang-Ta Lo & Tzu-Ting Yang, 2022. "The Effect of Financial Resources on Fertility: Evidence from Administrative Data on Lottery Winners," Papers 2212.06223, arXiv.org, revised Dec 2023.
    4. David Cesarini & Erik Lindqvist & Robert Östling & Björn Wallace, 2016. "Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 687-738.
    5. Scott Hankins & Mark Hoekstra, 2011. "Lucky in Life, Unlucky in Love?: The Effect of Random Income Shocks on Marriage and Divorce," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 403-426.
    6. Marianne Bertrand & Emir Kamenica & Jessica Pan, 2015. "Gender Identity and Relative Income within Households," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 571-614.
    7. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
    8. David Cesarini & Erik Lindqvist & Matthew J. Notowidigdo & Robert Östling, 2017. "The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries," American Economic Review, American Economic Association, vol. 107(12), pages 3917-3946, December.
    9. Yung-Yu Tsai & Hsing-Wen Han & Kuang-Ta Lo & Tzu-Ting Yang, 2022. "The Effect of Financial Resources on Fertility: Evidence fromAdministrative Data on Lottery Winners," IEAS Working Paper : academic research 22-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    10. George Bulman & Sarena Goodman & Adam Isen, 2022. "The Effect of Financial Resources on Homeownership, Marriage, and Fertility: Evidence from State Lotteries," NBER Working Papers 30743, National Bureau of Economic Research, Inc.
    11. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
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    More about this item

    Keywords

    Fertility; children; marriage; divorce;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • 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

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