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A Human Capital-Based Theory of Post-Marital Residence Rules Author info | Abstract | Publisher info | Download info | Related research | Statistics Matthew J. Baker () (United States Naval Academy)
Joyce P. Jacobsen () (Wesleyan University)
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In pre-modern societies the residence of a newly-wedded couple is often decided by custom. While researchers have analyzed factors leading to particular post-marital residence patterns, no one has explained why a society should have a customary rule in the first place. Our theory stems from contracting problems created by the nature of pre-marriage human capital investments. We argue that a fixed post-marital residence rule may solve a hold-up problem by specifying marriage terms and limiting possibilities for renegotiation; the trade-off is the rule may prohibit beneficial renegotiation of post-marital location. We compare alternative residence rules (or lack thereof) under different degrees of location specificity of human capital and environmental uncertainty. We apply our theoretical results to Murdock's (1967) 862-society data set, augmented with climate data. We find some predictive ability in variables related to outside options, control over the environment, and potential degree of social control.
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Paper provided by United States Naval Academy Department of Economics in its series Departmental Working Papers with number
2.
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Length: 50 pages
Date of creation: Apr 2003Date of revision:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Matthew J. Baker, 2004.
"Human Capital and Hold-ups in Indigenous Society: The Role of Customs and the Market ,"
Departmental Working Papers
7, United States Naval Academy Department of Economics.
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