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Research ArticleArticles

Lucky in Life, Unlucky in Love?

The Effect of Random Income Shocks on Marriage and Divorce

Scott Hankins and Mark Hoekstra
Journal of Human Resources, March 2011, 46 (2) 403-426; DOI: https://doi.org/10.3368/jhr.46.2.403
Scott Hankins
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Mark Hoekstra
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Abstract

Economists have long been interested in the extent to which economic resources affect decisions to marry and divorce. However, this issue has been difficult to address empirically due to a lack of exogenous income shocks. We overcome this problem by exploiting the randomness of the Florida Lottery and comparing recipients of large prizes to those of small prizes. Results indicate that while positive income shocks of $25,000 to $50,000 do not cause statistically significant or economically meaningful changes in divorce rates, single women are less likely to marry as a result of the additional income.

  • Received November 2009.
  • Accepted July 2010.

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Journal of Human Resources
Vol. 46, Issue 2
31 Mar 2011
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Lucky in Life, Unlucky in Love?
Scott Hankins, Mark Hoekstra
Journal of Human Resources Mar 2011, 46 (2) 403-426; DOI: 10.3368/jhr.46.2.403

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Lucky in Life, Unlucky in Love?
Scott Hankins, Mark Hoekstra
Journal of Human Resources Mar 2011, 46 (2) 403-426; DOI: 10.3368/jhr.46.2.403
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