Quotulatiousness

February 8, 2012

You can’t blame declining rates of marriage on poverty

Filed under: Economics, Media, USA — Tags: , , — Nicholas @ 11:33

Bryan Caplan explains:

I’m baffled by people who blame declining marriage rates on poverty. Why? Because being single is more expensive than being married. Picture two singles living separately. If they marry, they sharply cut their total housing costs. They cut the total cost of furniture, appliances, fuel, and health insurance. Even groceries get cheaper: think CostCo.

These savings are especially blatant when your income is low. Even the official poverty line acknowledges them. The Poverty Threshold for a household with one adult is $11,139; the Poverty Threshold for a household with two adults is $14,218. When two individuals at the poverty line maintain separate households, they’re effectively spending 2*$11,139-$14,218=$8,060 a year to stay single.

But wait, there’s more. Marriage doesn’t just cut expenses. It raises couples’ income. In the NLSY, married men earn about 40% more than comparable single men; married women earn about 10% less than comparable single women. From a couples’ point of view, that’s a big net bonus. And much of this bonus seems to be causal.

[. . .]

If being single is so expensive, why are the poor far less likely to get married and stay married? I’m sure you could come up with a stilted neoclassical explanation. But this is yet another case where behavioral economics and personality psychology have a better story. Namely: Some people are extremely impulsive and short-sighted. If you’re one of them, you tend to mess up your life in every way. You don’t invest in your career, and you don’t invest in your relationships. You take advantage of your boss and co-workers, and you take advantage of your romantic partners. You refuse to swallow your pride — to admit that the best job and the best spouse you can get, though far from ideal, are much better than nothing. Your behavior feels good at the time. But in the long-run people see you for what you are, and you end up poor and alone.

Tyler Cowen comments on the first part of Caplan’s post:

More plausibly it is the rise in female income (among other factors, including the rise of birth control, […]) which is behind the decline in marriage, but that doesn’t fit with traditional mood affiliation, which finds the rise in female income to be good (which it is), and the decline in marriage to be — neither good nor bad per se but not exactly worth celebrating. If you can blame capitalism and wage stagnation for the decline of the family among lower earners, so much the better for ideology but as a sociological proposition that is a very weak hypothesis (do you see convincing links to real sociological evidence, showing this to be the dominant factor? No) and as Caplan shows it doesn’t fit with the economics either.

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