Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321867 
Year of Publication: 
2025
Series/Report no.: 
ZEW Discussion Papers No. 25-035
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Why do US college-educated couples with children marry at higher rates than those without a college degree? We argue that investing in children is more valuable for college-educated couples, who are more likely to send their children to college. Marriage, which entails lower separation risk and more equal asset division if separation does occur, provides insurance to the lower-earning spouse, which facilitates child investment. Using an OLG model of marriage, cohabitation, wealth accumulation, and educational investments where college completion is risky, we find that insurance through marriage is particularly important when investing in children is costly and college costs are high.
Subjects: 
cohabitation
marriage
child development
time and money investments
human capital accumulation
college costs
JEL: 
D15
E24
J12
J22
J24
Document Type: 
Working Paper

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