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The Economics of Cohabitation

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  • Ressler, Rand W
  • Waters, Melissa S

Abstract

Union formation behavior has undergone vast changes over the past twenty-five years in virtually all Western countries. Key components of the change have been the increase in cohabitational unions and the decline in the marriage rate. This paper develops an economic model of cohabitational demand based on the standard theory of consumer choice. Regression analysis of U.S. data aggregated at the state level provides support for this economic model. Specifically, it suggests that the increased labor-force participation of women has generated a higher level of demand for the greater flexibility offered by cohabitational unions relative to formal marriage. Copyright 1995 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Ressler, Rand W & Waters, Melissa S, 1995. "The Economics of Cohabitation," Kyklos, Wiley Blackwell, vol. 48(4), pages 577-592.
    • Handle: RePEc:bla:kyklos:v:48:y:1995:i:4:p:577-92
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    Cited by:

    1. Samuel Cameron, 2002. "The Economics Of Partner Out Trading in Sexual Markets," Journal of Bioeconomics, Springer, vol. 4(3), pages 195-222, October.
    2. Waters, Melissa S. & Ressler, Rand W., 1999. "An economic model of cohabitation and divorce," Journal of Economic Behavior & Organization, Elsevier, vol. 40(2), pages 195-206, October.
    3. Arzhenovskiy, Sergey & Dudkina, Anna, 2012. "Econometric modeling of determinants of marital partnership form," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 26(2), pages 53-61.

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