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Exit and Voice in a Marriage Market

Author

Listed:
  • Akiko Maruyama

    (National Graduate Institute for Policy Studies (GRIPS))

  • Takashi Shimizu

    (Faculty of Economics, Kansai University)

  • Kazuhiro Yamamoto

    (Graduate School of Economics, Osaka University)

Abstract

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 the "exit" option. If a spouse does not hope to express his/her opinion and divorce, he/she chooses the "stay" option. We focus on the role of "exit" and "voice" in a marriage and investigate the effects of a divorce law that is based on fault or no-fault on divorce rates. Our study shows that divorce rates tend to be too high under a unilateral divorce law in the non-transferable utility case. On the other hand, mutual-consent divorce law generates multiple equilibria, and divorce rates are then inefficient even in the transferable utility case. In this multiple equilibrium case, divorce rates are determined by social factors, such as culture, norm, and religion.

Suggested Citation

  • Akiko Maruyama & Takashi Shimizu & Kazuhiro Yamamoto, 2009. "Exit and Voice in a Marriage Market," Discussion Papers in Economics and Business 09-04-Rev, Osaka University, Graduate School of Economics, revised Mar 2009.
    • Handle: RePEc:osk:wpaper:0904r
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exit; Voice; Divorce law;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • K0 - Law and Economics - - General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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