Working Paper: CEPR ID: DP6170
Authors: Pieter A. Gautier; Michael Svarer; Coen N. Teulings
Abstract: Is moving to the countryside a credible commitment device for couples? We investigate whether lowering the arrival rate of potential alternative partners by moving to a less populated area lowers the dissolution risk for a sample of Danish couples. We find that of the couples who married in the city, the ones who stay in the city have significant higher divorce rates. Similarly, for the couples who married outside the city, the ones who move to the city are more likely to divorce. This correlation can be explained by both a causal and a sorting effect. We disentangle them by using the timing-of-events approach. In addition we use information on father?s location as an instrument. We find that the sorting effect dominates. Moving to the countryside is therefore not a cheap way to prolong relationships.
Keywords: city; dissolution; mobility; search
JEL Codes: J12; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| stable marriages (J12) | more likely to reside in rural areas (R20) |
| unstable marriages (J12) | remain in urban settings (R23) |
| moving to a less populated area (the countryside) (R23) | decrease the dissolution risk for couples (J12) |
| location (R32) | divorce risk (J12) |
| fathers' location (J12) | likelihood of moving to the countryside (R23) |
| couples who remain in the city (R23) | higher divorce rate compared to those who relocate to rural areas (R23) |
| relocation to the countryside (R23) | does not significantly lower divorce rates (J12) |