Working Paper: CEPR ID: DP18000
Authors: David Cesarini; Erik Lindqvist; Robert Ståhl; Anastasia Terskaya
Abstract: We estimate the effects of large, positive wealth shocks on marriage and fertility in a sample of Swedish lottery players. For male winners, wealth increases marriage formation and reduces divorce risk, suggesting wealth increases men’s attractiveness as prospective and current partners. Wealth also increases male fertility. The only discernible effect on female winners is that wealth increases their short-run (but not long-run) divorce risk. Our results for divorce are consistent with a model where the wealthier spouse retains most of his/her wealth in divorce. In support of this assumption, we show divorce settlements in Sweden often favor the richer spouse.
Keywords: fertility; children; marriage; divorce
JEL Codes: D1; J12; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Marriage Formation (J12) | Divorce Risk (for males) (J12) |
| Wealth (D31) | Marital Stability (for females) (J12) |
| Wealth (D31) | Marriage Formation (J12) |
| Wealth (D31) | Divorce Risk (for males) (J12) |
| Wealth (D31) | Fertility (J13) |
| Wealth (D31) | Divorce Risk (for females) (J12) |