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The value of remarriage

Author

Listed:
  • Clement Joubert

    (University of North Carolina at Chapel Hill)

  • Sekyu Choi

    (Universitat Autonoma de Barcelona)

Abstract

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.

Suggested Citation

  • Clement Joubert & Sekyu Choi, 2012. "The value of remarriage," 2012 Meeting Papers 1111, Society for Economic Dynamics.
  • Handle: RePEc:red:sed012:1111
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    References listed on IDEAS

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    1. Michael P. Keane & Kenneth I. Wolpin, 2010. "The Role Of Labor And Marriage Markets, Preference Heterogeneity, And The Welfare System In The Life Cycle Decisions Of Black, Hispanic, And White Women," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 851-892, August.
    2. Nicolas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," Sciences Po publications info:hdl:2441/eu4vqp9ompq, Sciences Po.
    3. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
    4. Shannon Seitz, 2009. "Accounting for Racial Differences in Marriage and Employment," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 385-437, July.
    5. Steve Laufer & Ahu Gemici, 2009. "Marriage and Cohabitation," 2009 Meeting Papers 1191, Society for Economic Dynamics.
    6. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
    7. 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.
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