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Preliminary Draft-work in Progress Marriage , Cohabitation and Effects of Separation Costs . Evidence from Canada
| Content Provider | Semantic Scholar |
|---|---|
| Author | Goussé, Marion Leturcq, Marion |
| Copyright Year | 2018 |
| Abstract | Whereas marriage is still the dominant framework to raise a family, competitive partnerships emerge. Facing the increasing proportion of couples likely to cohabit rather than marry, some provincial governments of Canada have enhanced the commitment related to cohabitation to protect women and children in case of separation. To understand the effects of such a policy on couple formation, assortative matching and within-household allocation of resources, we need an equilibrium model of marriage. In this paper, we propose a search and matching model of marriage with two types of contracts to show how enhancing commitment of cohabiting couples might change the entry and exit rate into cohabitation and marriage, impact assortative matching and the within-household allocation of the total resources. We show that an increase in the separation cost for cohabiting people fosters marriage and deter cohabitation. Besides, it increases positive assortative matching. The evolution of marriage and cohabitation rates among different Canadian provinces where family law have been reformed is in line with our results. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://economics.sas.upenn.edu/system/files/event_papers/Marriage_Cohabitation.pdf?download=1 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
