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• W3193642780 abstract "The typical American family has undergone a dramatic transformation since 1950s. Marriage and fertility have been delayed, while single-motherhood rates have increased. The link between these facts emanates from greater delay in marriage than that in first births. As the Gap'' between age at first birth and age at first marriage becomes negative for some women, out-of-wedlock first births increase. This paper focuses on increase in income inequality and decrease in income mobility — observed across two National Longitudinal Survey of Youth (NLSY) cohorts of women — to account for above facts using an equilibrium two-sided search framework where agents make marriage and fertility choices over life-cycle. Marriage is a commitment device for consumption-sharing, providing spouses with partial insurance against idiosyncratic earnings risk. Agents derive utility from children, but children also involve a risky commitment to future monetary and time costs. According to my model, two observed trends in income process produce these changes in respective timings of marriage and fertility. First, increase in income inequality produces incentives to delay marriage. Since single women tend to face higher income risk than do married women, all else being equal, a decline in marriages when young implies delayed births, which are perceived to be risky. Second, decrease in income mobility also delays marriage as insurance value of marriage decreases but accelerates fertility because it becomes less risky to have a child. The model qualitatively matches observed changes in family formation and quantitatively accounts for a significant portion of observed changes in marriage and fertility timing between two NLSY cohorts." @default.
• W3193642780 created "2021-08-30" @default.
• W3193642780 creator A5058398508 @default.
• W3193642780 date "2017-01-01" @default.
• W3193642780 modified "2023-09-25" @default.
• W3193642780 title "Mind the Gap: What Explains Changes in the Relative Timing of Marriage and Fertility?" @default.
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• W3193642780 doi "https://doi.org/10.2139/ssrn.3316134" @default.
• W3193642780 hasPublicationYear "2017" @default.
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