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Exit and Voice in a Marriage Market

  • Akiko Maruyama

    ()

    (National Graduate Institute for Policy Studies (GRIPS))

  • Takashi Shimizu

    ()

    (Faculty of Economics, Kansai University)

  • Kazuhiro Yamamoto

    ()

    (Graduate School of Economics, Osaka University)

In this paper, we present a model in which agents choose voice, exit, or stay options when their marital condition becomes bad. The "voice" option can be interpreted as a spouse's effort or "investment" in the household to resolve his/her dissatisfaction and improve the marital condition. If a spouse hopes to divorce, he/she chooses "exit" option. If a spouse does not hopes to express his/her opinion and to divorce, he/she chooses "stay" option. We focus on the role of "exit" and "voice" in a marriage and investigate the effects of divorce law which is based on fault or no-fault on divorce rates. Our paper shows that divorce rates tend to be too higher under unilateral divorce law in the non-transferable utility case. On the other hand, mutual-consent divorce law generates multiple equilibria and then divorce rates are inefficient even in the transferable utility case. In this multiple equilibria case, divorce rates are determined by social factors as culture, norm, and religion, etc.

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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 09-04.

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Length: 33 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:osk:wpaper:0904
Contact details of provider: Web page: http://www.econ.osaka-u.ac.jp/
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  1. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
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