Consequences of Easy Divorce Consider a long term contract in which A performs early,B late If the contract is not enforceable A performs and B breaches. Opportunistic breach,not efficient breach In a traditional marriage,the wife performs early,the husband late Producing and rearing children is the hard part of the wife's job The husband's income usually rises over time So with easy divorce,some husbands breach opportunistically Once people adjust,how would women rationally respond? Specialize less in being a wife,more in market skills Postpone and spread out childbearing Be less likely to marry at all Consequences of Easy Divorce • Consider a long term contract in which A performs early, B late • If the contract is not enforceable • A performs and B breaches. • Opportunistic breach, not efficient breach • In a traditional marriage, the wife performs early, the husband late • Producing and rearing children is the hard part of the wife’s job • The husband’s income usually rises over time • So with easy divorce, some husbands breach opportunistically • Once people adjust, how would women rationally respond? • Specialize less in being a wife, more in market skills • Postpone and spread out childbearing • Be less likely to marry at all