More on Marriage, Fertility and the Distribution of Income

This is the accepted version of the following article: Greenwood , J., Guner, N. and Knowles, J. A. (2003), More on Marriage, Fertility, and the Distribution of Income. International Economic Review, 44(3), 827–862, which has been published in final form at: http://dx.doi.org/10.1111/1468-2354.t01-1-00091According to Pareto (1896), the distribution of income depends on “the nature of the people comprising a society, on the organization of the latter, and, also, in part, on chance.” In the model developed here the “nature of the people” is captured by attitudes toward marriage, divorce, fertility, and children. Singles search for mates in a marriage market. Married agents bargain about work, and the quantity and quality of children. They can divorce. Social policies, such as child support requirements, reflect the “organization of the (society).” Finally, “chance” is modeled by randomness in income, marriage opportunities, and marital bliss.Financial support from the NSF and SSHRC is gratefully acknowledged.Publicad