Arbeitspapier

Marital Risk, Family Insurance, and Public Policy

The present paper aims to quantify the growth and welfare consequences of changing family structures in western societies. For this reason we develop a dynamic general equilibrium model with both genders which takes into account changes of the marital status as a stochastic process. Individuals respond to these shocks by adjusting savings and labor supply. Our quantitative results indicate that the declining number of marriages coupled with increasing divorce rates had a profound effect on macroeconomic variables and long-run welfare. We find a significant increase in aggregate capital accumulation and a rising labor market participation of women. In addition, our simulations indicate that the change in the marital structure had significant negative welfare consequences for women who lost between 0.4 and 2.2 percent of aggregate resources. The impact on men's welfare, however, could be positive or negative depending on the specific calibration.

Sprache
Englisch

Erschienen in
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 226

Klassifikation
Wirtschaft
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Time Allocation and Labor Supply
Thema
family formation
stochastic general equilibrium
life cycle model

Ereignis
Geistige Schöpfung
(wer)
Fehr, Hans
Kallweit, Manuel
Kindermann, Fabian
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Fehr, Hans
  • Kallweit, Manuel
  • Kindermann, Fabian
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2009

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