Economics Seminar (March 18)
Dear colleague,
You are cordially invited to a
FACULTY OF ARTS AND SOCIAL SCIENCES
ECONOMICS SEMINAR
Friday, March 18, 2005
Speaker: Murat Iyigun -
Title: MARRIAGE MARKETS, DIVORCE AND INTRA-HOUSEHOLD ALLOCATIONS
Time: 15:30
Place: 2034, Faculty of Arts and Social Sciences,
Abstract:
We develop a collective household model with spousal matching in which there exists marital gains to assortative matching and marriage quality for each couple is revealed ex post. Marriages, intra-marital allocations and divorce are all determined endogenously. Spousal matching in the marriage markets generates a unique sharing rule for each couple which is determined by distribution factors such as relative spousal endowments, marriage and divorce legislation, the sex ratio, and the likelihood of remarriage in case of divorce. Changes in the divorce laws affect existing couples and couples-to-be differently. For existing couples, legislative changes that favor a spouse benefit that spouse especially if the marriage match quality is low. For couples not yet married, they generate offsetting intra-household transfers and lower intra-marital allocations for the spouse who is the intended beneficiary. Moreover, legislative changes necessitate higher intra-household transfers when the favored spouse is more likely to remarry after divorce. Thus, while
new divorce laws can have temporary effects in their desired direction, their longer term impact on intra-household allocations in marriages not yet formed can be completely
undone in the marriage and remarriage markets. Equilibrium intra-marital allocations also need to be time consistent. Hence, changes in the required divorce settlements could have lasting effects on the time paths of spousal allocations in existing as well as future marriages.
You can download the full paper from our seminar page at
http://www.sabanciuniv.edu/fass/economics/events/sm.html
Best regards.
Ozgur Kibris
____________________________
Özgür Kıbrıs
Assistant Professor of Economics
Faculty of Arts and Social Sciences, Sabancı Üniversity
Orhanlı,
İstanbul,
Phone: +90 (216) 483 9267
Fax: +90 (216) 483 9250
http://www.sabanciuniv.edu/fass/economics/econpeop/ozgur/main.htm