C. Theoretic Considerations
The product quality economic theory out-of matrimony suggests that individuals want to wed in the event the energy associated with being married exceeds the latest power when unmarried (Becker 1973, 1974). Each widow has a financial advantage of wishing up until the woman is 60 years of age in order to remarry, the difference in the present discount opinions of Social Defense advantages getting marrying after and marrying now. The cost of waiting to remarry boasts such things as forgone company together with inability to share with you expenditures. The advantage and cost are different with regards to the years where the new widow is given remarriage. Conditional on appointment a potential companion, the price of waiting reduces additionally the benefit develops as the she tactics years sixty. She’s going to remarry if your price of prepared is higher than the bonus.
H1: The new 1979 law eliminated the brand new punishment to have remarriage after years 60, and so raising the benefit of awaiting widows around sixty and you will reducing the price of remarriage on years 60 or older. Continue reading
