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Married Couples Cope Better With Health Shocks Than Singles
In the working paper by University of British Columbia economists Giovanni Gallipoli and Laura Turner, researchers examined data from the Canadian Survey of Labour and Income Dynamics (SLID) and found that in marriages, "main-earners" (typically husbands) tend to transfer income and compensate "second-earners" (typically wives).
The second-earners, in turn, provide conditional time and care in periods of need (such as illness and disability of main-earner).
The insurance the second-earner provides to the main-earner in the marital contract serves as an important mechanism to help smooth out household income in periods of health and disability shocks to the main-earner; and as a way to support the future earning potential of the main-earner, said Gallipoli.
The researchers also found that the relative value of marriage changes in different ways for men and women as they age.
Men who receive bad shocks early in life may lose the insurance offered by marriage by being sorted out of possible matches in the early stages, according to the study.
Marriages become more stable the longer the couple is together, and uncertainty is resolved.
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