Friday, May 16, 2014
Marriage: An Economic Institution
Becker also discusses the family unit, and its importance as an economic institution. Before individuals marry, they analyze the benefits and costs to the union, according to Becker. "The point of departure of my work on the family is the assumption that when men and women decide to marry or have children or divorce, they attempt to maximize their utility by comparing benefits and costs. So they marry when they expect to be better off than if they remained single, and they divorce if that is expected to increase their welfare." Becker is stating that individuals perform a cost-benefit analysis of their union with another individual, before undergoing the union. Marriage is viewed as a joining of two people within society, it is an act of love. However, Becker believes that within this act of love is an analysis of what can be gained from the union. Individuals are viewing this union from an economic perspective, and in the end they continue with the union because they believe they are going to gain success, wealth, and power from the union. It is an investment on their behalf, done entirely in self-interest. However, just like with a bad investment, if the marriage goes poorly, you divorce, and look for other ways to increase your personal welfare, including other marriages. So my question is this, how much longer will marriage survive as an institution? Marriage itself is a costly ceremony, and it has added costs throughout life. However, two individuals simply living together, without being legally married, could become a more beneficial union. We already see it today with couples remaining together for years at a time without every marrying. So my question remains, how much longer will marriage survive as institution before it loses its value, or be replace by a non-binding union? How much longer will individuals see more benefits to marriage than costs? It is unlikely that marriage will ever disappear, but is it on a decline, and if so what effects will this decline have on the economy?
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You ask an interesting question, Kyle. But let me qualify it a bit.
ReplyDeletePerhaps the question should be "how long will marriage last as a FORMAL institution?"
I suspect people will continue to form attachments and relationships of a permanent or semi-permanent nature. And I suspect they will continue to use the same type of thinking in forming the relationship as Becker described. However, there will be one less aspect (ceremonial or traditional) to consider as a factor.
\There is no need to respond to this as we are past the deadline for inclusion in the grade. However, you are more than welcome to continue the conversation through the end of this week.
Professor Schilling