Caucutt, Elizabeth M.; Guner, Nezih; Knowles, John - In: Review of Economic Dynamics 5 (2002) 4, pp. 815-855
This paper explores the interaction between wage inequality and the marriage and fertility decisions of young women. We … develop an equilibrium search model of marriage, divorce, and investment in children that allows for differential timing of … by marriage and labor markets. We find that these incentives help explain both the cross-sectional relationship between …