2023
DOI: 10.1920/wp.ifs.2023.3523
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A spouse and a house are all we need? Housing demand, labor supply and divorce over the lifecycle

Bram De Rock,
Mariia Kovaleva,
Tom Potoms

Abstract: To analyze the impact of changes in the value of marriage on household decisions, we present a limited commitment framework of household behavior in which decisions are made regarding labor supply, divorce and housing demand over the lifecycle. We identify and estimate our structural model using exogenous variation in female labor supply and divorce rates due to the White v. White case in England. We conclude that limited commitment dampens the added worker effect, while the changes in the value of marriage du… Show more

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