Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284261 
Year of Publication: 
2023
Series/Report no.: 
IFS Working Papers No. 23/35
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
To analyze the impact of changes in the value of marriage on household decisions, we present a limited commitment framework of household behavior in which decisions are made regarding labor supply, divorce and housing demand over the lifecycle. We identify and estimate our structural model using exogenous variation in female labor supply and divorce rates due to the White v. White case in England. We conclude that limited commitment dampens the added worker effect, while the changes in the value of marriage due to a housing price shock have an asymmetric impact on individual welfare both across gender and marital state. We also show that tightening the credit market in different ways can lead to opposite behavior in terms of household savings and female labor supply.
Subjects: 
Limited commitment
divorce legislation
value of marriage
housing demand
labor supply
credit market policy
JEL: 
D14
D15
J12
J22
K36
R21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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