An Investment-and-Marriage Model with Differential Fecundity
58 Pages Posted: 14 Oct 2019
Date Written: 2019
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: Suggested Citation