Abstract
The positive correlation between the rates of cohabitation and divorce has long been established. This paper seeks to determine the direction of causation between these two variables. A simultaneous equations model is specified with cohabitation and divorce rates as endogenous variables and using data aggregated to the state level for 1990.
This procedure suggests that the divorce rate is a significant factor in explaining variations across states in the cohabitation rate, and that the divorce rate is itself influenced by cohabitation behavior.
This finding strengthens the results put forth by various economic and sociological single equation studies. This synthesis of information and data provided by sociologists with economic theory and methodology, suggests further research in modelling demographic variables as joint outcomes of the same process.
| Original language | American English |
|---|---|
| Journal | Journal of Economic Behavior and Organization |
| Volume | 40 |
| DOIs | |
| State | Published - 1999 |
Disciplines
- Finance and Financial Management
- Business
Keywords
- Household behavior
- Marital dissolution
- Marriage