On the State of the Union

Abstract

An ovedapping gencrations model of nlan-iage and divorce is constructed to analyze farnilv structure and intergenerational mobility. Agents diffel- by sex, marital status, and human capitaL Single agents Ineet in a lnalTiage Inarket and decide whether to accept or reject proposab to wed. Manied couples must decide whether to separate or floL Parcnts in"cst in their children depending on theil- wherewithal. A simulated ver'sÍon of the thcorctical PI-ototype can generate an equilihriunl with a significanl nurIlber of feInaleheaded families and a high degree of persistence in inconle across generations. To illllstrate the mooel's nlechanics, (he effects uf two antipo\'erty policies, namely child support and welfare. are illvestigated.