publication . Article . Research . Preprint . Book . 2012

United but (Un-)Equal: Human Capital, Probability of Divorce and the Marriage Contract

Cremer, Helmuth; Pestieau, Pierre; Roeder, Kerstin;
Open Access English
  • Published: 01 Nov 2012
  • Publisher: HAL CCSD
Abstract
This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk. Symmetry in education (both spouses receive an equal amount of education) then acts like an insurance device in case of divorce particularly when the institutions do not compensate for differences in earnings. But, at the same time symmetry in education is less efficient than the extreme specialization. This is the basic tradeoff underlying our analysis. We show that the symmetric allocation will become more attractive as the ...
Subjects
free text keywords: D13, J24, K36, post-marital education, marriage contract, Ehe, Bildungsinvestition, Scheidung, Risiko, Familienökonomik, Vertrag, Theorie, B- ECONOMIE ET FINANCE, post-marital education, marriage contract, divorce, : Economic systems & public economics [Business & economic sciences], : Systèmes économiques & économie publique [Sciences économiques & de gestion], post-marital education; marriage contract; divorce, Divorce, Marriage, Human capital, JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D13 - Household Production and Intrahousehold Allocation, JEL: J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J24 - Human Capital • Skills • Occupational Choice • Labor Productivity, JEL: K - Law and Economics/K.K3 - Other Substantive Areas of Law/K.K3.K36 - Family and Personal Law, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, ddc:330, jel:D13, jel:J24, jel:K36, Economics and Econometrics, Demography, Price elasticity of supply, Labour economics, Risk aversion, Economics, Spouse, Social policy
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publication . Article . Research . Preprint . Book . 2012

United but (Un-)Equal: Human Capital, Probability of Divorce and the Marriage Contract

Cremer, Helmuth; Pestieau, Pierre; Roeder, Kerstin;