Skip to main content

The Retreat from Marriage

Over the past three to four decades, there has been a retreat from marriage in the West. For example, even in a conservative society like Northern Ireland, 42 per cent of births occur outside marriage (according to NISRA demography statistics). One interesting feature of this retreat from marriage is that there is a stark difference between socioeconomic groups. In particular, the retreat from marriage has been greatest among the least educated and poorest sections of society - this holds true across most countries. Click here to read a VOX piece on why this might be the case. The conclusion of the authors is as follows:
"As the gains to household specialisation have decreased and cohabitation has become a socially acceptable mechanism for obtaining the benefits of a joint household, the practical significance of marriage has shifted away from a commitment device that facilitates a long-term gendered division of labour towards one that supports high levels of parental investment in children. Hence, the benefits of marriage are substantially greater for parents who want to adopt a high investment strategy than for those who do not. Well-educated, high-income parents tend to make more intensive investments in their children. We argue that these class differences in patterns of childrearing are the key to understanding observed differences in marriage and parenthood".

Popular posts from this blog

Bitcoin Bubble?

According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money.   George Selgin , a free banker, takes an opposing view - click here .  Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .