We investigate the importance of economic factors in young Americans’ decisions to form and dissolve households. We adopt a search theoretic framework to analyse the decisions to: leave the parental home; form a marriage or partnership; and dissolve a marriage or partnership. We focus, in...

The paper investigates the importance of income in young Americans’ decisions to form and dissolve households. Using data on young American men and women from the NLSY, an important role for income in both these transitions is found. There are significant differences between young men and...