Abstract
The increasing divorce rate has become a major social concern for policy makers in the Islamic government of Iran. The price of gold coin is an important factor in cost-benefit analysis for individuals in their marriage and divorce decisions in Iran. Dowries (Mehrieh) are usually in the form of gold coin and a wife has a legal right to request them from her husband upon both parties signing the marriage contract. Increasing the price of gold coin may intensify the internal stress and struggles within families, leading to a higher probability of divorce. We investigated the long-run relationship between real price of gold coin and divorce rate for the case of Iran over the period 1980–2014. Controlling for other factors such as women’s education, social globalization, economic growth rate, and the war period with Iraq, our regression results showed that there is a positive and significant long-run relationship between real price of gold coin (as well as unanticipated changes in real price of gold coin) and marital instability.
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