Farzanegan, Mohammad Reza Fereidouni, Hassan Gholipour
Year of Publication:
MAGKS Joint Discussion Paper Series in Economics No. 01-2014
The term marriage crisis is becoming more visible in Iranian public and private debates and constitutes a major issue in political discussions at the time of elections. The increasing working age and young population in Iran have difficult times to establish family. This has increased the political concerns of addressing the basic needs of young Iranians. This study examines the link between housing costs and marriage rate in Iran controlling for other relevant economic determinants of marriage. Using a panel of provinces of Iran over a period of nine years (2003-2011) and applying generalized method of moments (GMM) estimator, our results reveal that there is a negative relationship between housing costs and marriage rate. We also find that government special loan for marriage, and lower level of unemployment rate increase marriage rate. Finally, increasing spending on higher education has a dampening effect on marriage rate.