Marriage, Divorce and Interstate Risk Sharing

33 Pages Posted: 13 Oct 2008

See all articles by Martin Halla

Martin Halla

Johannes Kepler University Linz - Department of Economics; IZA Institute of Labor Economics

Johann Scharler

University of Linz - Department of Economics

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Abstract

In this paper we study the importance of marriage for interstate risk sharing. We find that US states in which married couples account for a higher share of the population are less exposed to state-specific output shocks. Thus, marriages do not just improve the allocation of risk at the individual level, but also have implications for the allocation of risk at the more aggregated state-level. Quantitatively, the impact of marriage on interstate risk sharing varies over divorce regimes.

Keywords: risk sharing, marriage, divorce, family law

JEL Classification: J12, E21, K36, G21

Suggested Citation

Halla, Martin and Scharler, Johann, Marriage, Divorce and Interstate Risk Sharing. IZA Discussion Paper No. 3744, Available at SSRN: https://ssrn.com/abstract=1282966 or http://dx.doi.org/10.2139/ssrn.1282966

Martin Halla (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Johann Scharler

University of Linz - Department of Economics ( email )

Altenbergerstrasse 69
Linz, A-4040
Austria

HOME PAGE: http://www.econ.jku.at/scharler

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