Which work for is actually self-confident unless the chances of the fresh new companion perishing is really higher
C. Theoretic Factors
The product quality economic idea out of marriage suggests that individuals choose to get married in the event the electric associated with being married exceeds the electric whenever unmarried (Becker 1973, 1974). For each and every widow has actually a financial advantageous asset of waiting until this woman is sixty years old in order to remarry, which is the difference in the present discount values of your Personal Security experts to own marrying after and marrying today. The expense of waiting to remarry is sold with such things as forgone company additionally the inability to express costs. The advantage and value are different according to the age from which the newest widow was provided remarriage. Depending on appointment a potential spouse, the cost of waiting minimizes as well as the work with expands due to the fact she means years sixty. She will remarry should your cost of wishing is higher than the bonus.
H1: The brand new 1979 rules got rid of the new penalty to have remarriage shortly after years 60, and therefore raising the advantageous asset of waiting around for widows less than 60 and you can decreasing the cost of remarriage on ages sixty or old. We hypothesize your 1979 rules do decrease the wedding rates for ladies below age 60 and increase the marriage price getting people aged 60 ages otherwise old.
H2: The expense of wishing decreases together with work for develops given that a beneficial widow techniques sixty, together with relationships rates is always to drop off as widows approach ages sixty. (more…)