Tuesday 19 March 2013

The Decline of Marriage and the Rise of Unwed Mothers: An Economic Mystery
The real question here isn't "Why so many babies?" It's "Why so few marriages?" And we have an answer.

800 single mom.jpg
Reuters
This was the most shocking statistic I read this weekend: 58 percent of first births in lower-middle-class households are now to unmarried women. Meanwhile, two in five of all births are to unwed mothers, an all-time high, according to the Centers for Disease Control and Prevention.

Why?

The thesis of this fascinating article in the Wall Street Journal says the real mystery here isn't "Why so many babies?" but rather "Why so few marriages?" -- particularly among less-educated men and women.

This is a complex economic mystery that we've explored often at The Atlantic, but we can take a big bite out of it by focusing on three factors: (1) The changing meaning of marriage in America; (2) declining wages for low-skill men; and (3) the declining costs of being a single person.

A New Union

Marriage has changed. Once upon a time, the typical marriage, as Justin Wolfers has explained, involved special roles for the husband and wife. He would work. She would stay home. It was an efficient arrangement where opposites attracted. Men who wanted to be executives would marry women who wanted to be housewives. And, since almost half of women had no independent earnings 40 years ago, there were a lot of women who just wanted to work at home and raise a family.

Several factors mussed up this traditional union. Today women expect to work much, much more than they used to -- and they do. They make up the majority of new college graduates and their labor participation rate has soared over 60 percent. Since 1950, hours of work by married women have increased by roughly a factor of three, according to theMinneapolis Fed

Now that women are better educated, with greater control over both their fertility and their earnings, modern marriage has changed from an arrangement where men marry for a housewife to a "hedonic" model where both partners can be the breadwinner. As marriage has shifted from opposites-attract to like-attracts-like, researchers have found that sorting has increased all along the educational scale. College graduates are more likely than ever to marry college graduates, as Charles Murray has written. High school dropouts are more likely to marry high school dropouts.

Think of marriage like any other contract or investment. It's most likely to happen when the gains are big. So we should expect marriages among low-income Americans to decline if women perceive declining gains from hitching themselves to the men around them.

Read more at the Atlantic.

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