Household overspending on marriage: the scale of the problem and government reactions around the world

Abstract

PurposeThe article offers an empirical investigation of the incidence and scale of household marriage overspending around the world, and the governments' reaction once the problem emerges.Design/methodology/approachThis study relies on regression analysis of open source data from legislation, mass media, and judiciary hearings for 141 countries. In the Phase 1 logistic regression of cross-country large-N data is used to identify country-incidence of marriage cost escalation. In the Phase 2 ordered logistic regression is used to uncover statistically significant factors that predict the probability of alternative government reactions in 87 countries which experience marriage cost escalation.FindingsIn a strong collectivist sociocultural environment, driven by informality, the rise of middle classes, combined with the decline of traditional hierarchies, and limited opportunities for economic mobility motivates households to enter emulative wedding spending, thus leading to overspending. Governments' reaction depends on available policy resources, and the economic scale of the problem.Research limitations/implicationsThe research findings suggest that rising living standards in the developing countries are more likely to escalate wedding costs, and consequently reinforce traditional values.Originality/valueAcademic literature links marriage-related overspending to armed insurgency, child marriage and decreasing state efficiency. Despite the problem's scope, existing research has not comprehensively addressed both its causes, and cross-country differences in government reactions to it. The article addresses both of the mentioned gaps, by offering a conceptual model of marriage cost escalation.