The economics of marriage: Evidence from China

Abstract

Marriage market imbalances are common in modern society for social and economic reasons, including the increased cost of marriage caused by high housing prices and an imbalance in the number of men and women. We draw on the family economic theory of Gary Becker to study the general equilibrium of the marriage market in China. On the one hand, we find that the increasing price of houses, an important measure of marriage cost, has significantly reduced the marriage rate in China. Another determining factor that has reduced the marriage rate is an imbalance in the sex ratio, with more men than women, as a result of China’s one-child policy. On the other hand, higher GDP and educational levels have positive effects on the marriage rate. Interestingly, the rise in housing prices after the implementation of the two-child policy in China has had a more negative impact on the marriage rate. Overall, our findings have important policy implications for government.