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The value of remarriage

  • Clement Joubert

    (University of North Carolina at Chapel Hill)

  • Sekyu Choi

    (Universitat Autonoma de Barcelona)

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    Until 2004, divorce in Chile was illegal and separated women, representing 12% of all married women, were unable to remarry. This paper examines how the option of exiting the relationship and remarrying has changed the bargaining power in married and separated households. Using longitudinal survey data, we first document the effects of the reform on couples formation and separation, and on the labor force participation and labor supply decisions of married, separated, cohabiting and single women. We then use this variation in the data to structurally estimate a dynamic collective model of marriage, remarriage and household labor force participation and estimate the welfare impacts of the reform on men and women.

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    File URL: https://www.economicdynamics.org/meetpapers/2012/paper_1111.pdf
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    Paper provided by Society for Economic Dynamics in its series 2012 Meeting Papers with number 1111.

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    Date of creation: 2012
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    Handle: RePEc:red:sed012:1111
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    1. S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000. "On the State of the Union," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 213-244, April.
    2. Michael P. Keane & Kenneth I. Wolpin, 2006. "The Role of Labor and Marriage Markets, Preference Heterogeneity and the Welfare System in the Life Cycle Decisions of Black, Hispanic and White Women," PIER Working Paper Archive 06-004, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    3. Justin Wolfers, 2006. "Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results," American Economic Review, American Economic Association, vol. 96(5), pages 1802-1820, December.
    4. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
    5. Daniel McFadden, 1987. "A Method of Simulated Moments for Estimation of Discrete Response Models Without Numerical Integration," Working papers 464, Massachusetts Institute of Technology (MIT), Department of Economics.
    6. Bargain, Olivier & González, Libertad & Keane, Claire & Özcan, Berkay, 2010. "Female Labour Supply and Divorce: New Evidence from Ireland," Papers WP346, Economic and Social Research Institute (ESRI).
    7. Johnson, William R & Skinner, Jonathan, 1986. "Labor Supply and Marital Separation," American Economic Review, American Economic Association, vol. 76(3), pages 455-69, June.
    8. Betsey Stevenson, 2008. "Divorce Law and Women's Labor Supply," NBER Working Papers 14346, National Bureau of Economic Research, Inc.
    9. Nicolas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," Sciences Po publications info:hdl:2441/eu4vqp9ompq, Sciences Po.
    10. van der Klaauw, Wilbert, 1996. "Female Labour Supply and Marital Status Decisions: A Life-Cycle Model," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 199-235, April.
    11. Shannon N. Seitz, 2002. "Accounting for Racial Differences in Marriage and Employment," Working Papers 1009, Queen's University, Department of Economics.
    12. repec:hal:journl:halshs-00639313 is not listed on IDEAS
    13. Gray, Jeffrey S, 1998. "Divorce-Law Changes, Household Bargaining, and Married Women's Labor Supply," American Economic Review, American Economic Association, vol. 88(3), pages 628-42, June.
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