An Investment-and-Marriage Model with Differential Fecundity

58 Pages Posted: 14 Oct 2019

See all articles by Hanzhe Zhang

Hanzhe Zhang

Department of Economics, Michigan State University

Multiple version iconThere are 4 versions of this paper

Date Written: 2019

Abstract

I build an equilibrium investment-and-marriage model to explain stylized facts about education, income, and marriage for Americans born in the twentieth century that had not been explained in a unified way. The most novel finding is a theoretical explanation for why women attend college at a higher rate and earn a lower average income than men. Differential fecundity and an equilibrium marriage market form the basis of my explanation. The model also accounts for gender-specific relationships between age at marriage and income, as well as the evolving relationship between age at marriage and spousal income for women. I provide evidence to support my theory and calibrate the model to conduct counterfactual analyses.

Keywords: college gender gap, earnings gender gap, marriage age, nonassortative matching

JEL Classification: C780, D100

Suggested Citation

Zhang, Hanzhe, An Investment-and-Marriage Model with Differential Fecundity (2019). CESifo Working Paper No. 7872, Available at SSRN: https://ssrn.com/abstract=3468007

Hanzhe Zhang (Contact Author)

Department of Economics, Michigan State University ( email )

486 West Circle Drive
East Lansing, MI 48824
United States

HOME PAGE: http://hanzhezhang.github.io/

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