Can Pro-Marriage Policies Work? An Analysis of Marginal Marriages

37 Pages Posted: 21 Jul 2012

See all articles by Wolfgang Frimmel

Wolfgang Frimmel

University of Linz

Martin Halla

Johannes Kepler University Linz - Department of Economics; IZA Institute of Labor Economics

Rudolf Winter-Ebmer

Johannes Kepler University Linz - Department of Economics; Institute for Advanced Studies (IHS) - Department of Economics & Finance; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

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Abstract

Policies to promote marriage are controversial, and it is unclear whether they are successful. To analyze such policies, it is essential to distinguish between a marriage that is created by a marriage-promoting policy (marginal marriage) and a marriage that would have been formed even in the absence of a state intervention (average marriage). In this paper, we exploit the suspension of a cash-on-hand marriage subsidy in Austria to examine the differential behavior of marginal and average marriages. The announcement of this suspension led to an enormous marriage boom (plus 350 percent) among eligible couples that allows us to identify marginal marriages. Applying a difference-in-differences approach, we show that marginal marriages are surprisingly as stable as average marriages, but have fewer children and have them later in marriage. Notably, the children born to marginal marriages are similar in terms of health at birth.

Keywords: marriage-promoting policies, marriage subsidies, marital instability, divorce, fertility

JEL Classification: J12, H24, H53, I38

Suggested Citation

Frimmel, Wolfgang and Halla, Martin and Winter-Ebmer, Rudolf, Can Pro-Marriage Policies Work? An Analysis of Marginal Marriages. IZA Discussion Paper No. 6704, Available at SSRN: https://ssrn.com/abstract=2114884 or http://dx.doi.org/10.2139/ssrn.2114884

Wolfgang Frimmel (Contact Author)

University of Linz ( email )

Altenbergerstr. 69
A-4040 Linz, Uper Austria 4040
Austria

Martin Halla

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Rudolf Winter-Ebmer

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8236 (Phone)
+43 732 2468 8238 (Fax)

HOME PAGE: http://www.econ.jku.at/winter

Institute for Advanced Studies (IHS) - Department of Economics & Finance ( email )

Stumpergasse 56
A-1060 Vienna, A-1060
Austria

HOME PAGE: http://www.ihs.ac.at

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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