41 Pages Posted: 14 Apr 2002
Date Written: March 2002
According to Pareto (1896), the distribution of income depends on "the nature of the people comprising a society, on the organization of the latter, and, also, in part, on chance." In the model developed here the "nature of the people" is captured by attitudes toward marriage, divorce, fertility, and children. Singles search for mates in a marriage market. Married agents bargain about work, and the quantity and quality of children. They can divorce. Social policies, such as child support requirements, reflect the "organization of the (society)." Finally, "chance" is modelled by randomness in income, marriage opportunities, and marital bliss.
Keywords: Fertility, Marriage and Divorce, Nash Bargaining, Income Distribution, Public Policy
JEL Classification: E1, D1, J1
Suggested Citation: Suggested Citation
Greenwood, Jeremy and Guner, Nezih and Knowles, John, More on Marriage, Fertility and the Distribution of Income (March 2002). Available at SSRN: https://ssrn.com/abstract=304220 or http://dx.doi.org/10.2139/ssrn.304220
By Jing Liu