Marriage, Divorce, and Interstate Risk Sharing

24 Pages Posted: 28 Feb 2012

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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Date Written: March 2012

Abstract

In this paper, we study the importance of marriage for interstate risk sharing in the US. We find that US federal states in which married couples account for a higher share of the population are less exposed to stateā€specific output shocks. Thus, in addition to improving the allocation of risk at the individual level, marriage also has implications for risk sharing 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: E21, G21, J12, K36

Suggested Citation

Halla, Martin and Scharler, Johann, Marriage, Divorce, and Interstate Risk Sharing (March 2012). The Scandinavian Journal of Economics, Vol. 114, Issue 1, pp. 55-78, 2012, Available at SSRN: https://ssrn.com/abstract=2012220 or http://dx.doi.org/10.1111/j.1467-9442.2011.01673.x

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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