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Reading Halla, M., Lackner, M. & Scharler, J. (2016) “Does the welfare state destroy the family? Evidence from OECD member countries”. The Scandinavian Journal of Economics 118(2): XXXXXXXXXX....

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Reading

Halla, M., Lackner, M. & Scharler, J. (2016) “Does the welfare state destroy the family? Evidence from OECD member countries”. The Scandinavian Journal of Economics 118(2): XXXXXXXXXX.

Question/Prompt

1. Explain why a larger welfare state might be expected to increase turnover in the marriage market. (200 words)

2. Find another example of a government policy or family law that affects relationship decisions. Provide a reference to a study, and briefly describe the mechanism.

Answered Same Day Dec 27, 2021

Solution

Robert answered on Dec 27 2021
119 Votes
1) The welfare state influences the utility of being ma
ied or single by subsidising it or by
penalising it. Based on the empirical study with country level data from the OECD countries,
we could see that a large welfare state has a positive effect on the divorce rate by reducing the
cost of divorce and by improving the post-divorce income condition. This means that the
ma
iages that survive are of a much better quality. Even though a welfare state supports
ma
iage dissolution conditions, it still has a greater effect on ma
iage supporting...
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