“Children, Marriage Markets, and Poverty: Intrahousehold Allocations and Individual Welfare”

Auteurs: Laurens Cherchye, Bram De Rock and Khushboo Surana

Abstract:

This paper investigates how the presence of children and educational attainment shape intrahousehold resource allocations and individual welfare within marriage markets. Building on the collective household framework introduced in Cherchye, De Rock, and Surana (JPE Micro, forthcoming), we extend the analysis to incorporate fertility choices and their implications for individual poverty. Using U.S. data on individuals aged 21-45, we define marriage markets at the state level and classify households by education (low vs. high) and number of children (none, one, two or more). Our approach computes consumption- and time-based poverty rates using equivalised measures that adjust for household composition, assigning weights to children in line with OECD standards. Results reveal substantial heterogeneity across marriage markets and demographic groups: individuals with more children exhibit higher poverty risks, particularly women with lower education. We also document systematic differences in intrahousehold resource shares and leisure allocations, highlighting the interplay between labor market participation, marital status, and fertility. These findings contribute to understanding the joint determination of marriage, childbearing, and individual welfare, offering new insights into policy design aimed at reducing poverty and promoting gender equity.