UNIVERSITY OF ECONOMICS
INSTITUTE OF SOCIAL STUDIES
HO CHI MINH CITY
THE HAGUE
VIETNAM
THE NETHERLANDS
VIETNAM – NETHERLANDS
PROGRAM FOR M.A IN DEVELOPMENT ECONOMICS
HOW DO WOMEN’S EDUCATION AND CAREER AFFECT THEIR DECISION ON
MARRIAGE AND MOTHERHOOD?
A CASE STUDY FOR VIETNAM
BY
TRUONG UYEN PHUONG
Academic Supervisor
Dr. TRUONG DANG THUY
DECEMBER 15th, 2016
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ACKNOWLEDGEMENT
The first thing I would like to express is my deepest gratitude to my academic supervisor Dr. Truong
Dang Thuy. Thanks for your enthusiastic, patient and dedicated support for guiding me to implement
this thesis and overcome many difficulties during the entire process. Once again, I am really
appreciated your valuable encouragement.
I would like to give my appreciation to all lecturers in Vietnam – Netherlands Program, who have
provided me such useful knowledge that I can applied to this thesis as well as in my future’s job.
I am grateful to all staffs of Vietnam – Netherlands Program and all of my friends for your help. I
deeply treasure all the moments we have and share with each other.
Yet I have still had a lot of mistakes, I really expect all teachers to give sincere remarks to me to be
better. And the last one is our best wishes to all of you.
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ABSTRACT
Nowadays, time to marry has been earlier among women in developing countries, and time of entry
into first marriage has each particular effect on health issue of women and their children. However,
there are not many researches focusing on this area, especially for the case of Southeast Asia countries.
Therefore, this paper is designated for filling this gap, and I choose the case of Vietnam for analysis to
investigate the association between social factors such as education, ethnic, religion, and income and
on women’s first marriage and childbirth decisions. The dataset is established from a random online
survey with 505 respondents including men and women, but the purpose of this paper is not suitable for
men, then male’s respondents are automatically excluded from the dataset. Consequently, my sample
consists of 304 women aged 18 to 66, which is divided into birth cohort in order to find whether there
is any difference in marriage or rearing children among generations. Survival model analysis is applied
to give the probability of getting marriage at a specific time of women’s life. The study found that
educational level, income, time of first intercourse, promotion achievement have significant impacts on
women’s marriage decision and fertility.
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CONTENTS
CHAPTER 1: INTRODUCTION
1.1. RESEARCH PROBLEM ................................................................................................................ 7
1.2. RESEARCH OBJECTIVES ........................................................................................................... 9
CHAPTER 2: LITERATURE REVIEW
2.1. THEORETICAL LITERATURE ................................................................................................ 11
2.1.1. Theory of Marriage & The division of Labor ............................................................................ 11
2.1.2. Theory of Marriage Market........................................................................................................ 16
2.1.3. Theory of Fertility ...................................................................................................................... 18
2.2. REVIEW OF EMPIRICAL STUDIES ........................................................................................ 21
CHAPTER 3: DATA AND METHODOLOGY
3.1. DATA .............................................................................................................................................. 25
3.2. METHODOLOGY......................................................................................................................... 25
3.3. VARIABLES’S DEFINITION...................................................................................................... 27
CHAPTER 4: EMPIRICAL RESULT
4.1. EMPIRICAL RESULT ................................................................................................................. 40
4.1.1.Statistics ...................................................................................................................................... 40
4.2. RESULTS ....................................................................................................................................... 71
4.2.1.Result for First-Marriage ............................................................................................................ 71
4.2.2.Result for First-Birth ................................................................................................................... 74
CHAPTER 5: CONCLUSION
5.1. MAIN FINDINGS & RECOMMENDATION ............................................................................ 78
5.2. LIMITATION AND FURTHER STUDIES ................................................................................ 80
REFERENCE ........................................................................................................................................ 82
APPENDIX ............................................................................................................................................ 84
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LIST OF TABLES
Table 3.1.
First-Marriage Variables Description (Education and Career Variables)
Table 3.2.
First-Marriage Variables Description (Social Background Variables)
Table 3.3.
First-Birth Variables Description (Education and Career Variables)
Table 3.4.
First-Birth Variables Description (Social Background Variables)
Table 3.5.
First-Birth Variables Description (Social Background Variables)
Table 4.1.
Summary statistics of First marriage
Table 4.2.
Summary statistics of Women’s educational level at first marriage
Table 4.3.
Summary statistics of Women’s promotion achievement at first marriage
Table 4.4.
Summary statistics of Job movement at first marriage
Table 4.5.
Summary statistics of Job at first marriage
Table 4.6.
Summary statistics of Birth cohort
Table 4.7.
Summary statistics of Residence at first marriage and first birth
Table 4.8.
Summary statistics of being a chief income earner at first marriage
Table 4.9.
Summary statistics of acestor worship at first marriage and first birth
Table 4.10.
Summary statistics of Religion at first marriage and first birth
Table 4.11.
Summary statistics of Birth order at first marriage and first birth
Table 4.12.
Summary statistics of Father’s education at first marriage and first birth
Table 4.13.
Summary statistics of Mother’s education at first marriage and first birth
Table 4.14.
Summary statistics of Father’s job at first marriage and first birth
Table 4.15.
Summary statistics of Mother’s job at first marriage and first birth
Table 4.16.
Summary statistics of First birth
Table 4.17.
Summary statistics of Educational level at first birth
Table 4.18.
Summary statistics of Promotion achievement at First birth
Table 4.19.
Summary statistics of Job movement at First birth
Table 4.20.
Summary statistics of Job at First birth
Table 4.21.
Summary statistics of Living arrangement at First birth
Table 4.22.
Summary statistics of Housework regularity at First birth
Table 4.23.
Summary statistics of Abortion at First birth
Table 4.24.
Summary statistics of Contraceptive knowledge at First birth
Table 4.25.
Summary statistics of Age at First intercourse
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Table 4.26.
Summary statistics of Contraceptive type at First birth
Table 4.27.
Summary statistics of Women’s wealth at first marriage and first birth
Table 4.28.
Results for First marriage by Exponential and Cox regression Model
Table 4.29.
Results for First birth by Exponential and Cox regression Model
(Educational and Career opportunities variables)
Table 4.30.
Results for First marriage by Exponential and Cox regression Model
(Social background variables)
Graph 1.
Probability of remaining single by women’s age
Graph 2.
Probability of remaining single by women’s birth cohort
Graph 3.
Probability of remaining single by women’s educational level
Graph 4.
Probability of remaining single by women’s job
Graph 5.
Probability of remaining single by women’s promotion achievement
Graph 6.
Probability of remaining single by women’s job movement
Graph 7.
Probability of not having first child by Age
Graph 8.
Probability of not having first child by birth cohort
Graph 9.
Probability of not having first child by women’s education
Graph 10.
Probability of not having first child by women’s job
Graph 11.
Probability of not having first child by women’s promotion achievement
Graph 12.
Probability of not having first child by women’s job movement
Graph 13.
Probability of marriage by educational level
Graph 14.
Probability of marriage by promotion achievement
Graph 15.
Probability of marriage by Job movement
Graph 16.
Probability of marriage by Job
Graph 17.
Probability of fertility by educational level
Graph 18.
Probability of fertility by promotion achievement
Graph 19.
Probability of fertility by job movement
Graph 20.
Probability of fertility by Job
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Chapter 1
Introduction
1.1.
RESEARCH PROBLEM
In recent years, economists have frequently used economic theory to explain the behavior outside
economic sector, for example, crime, education, politics, corruption, fertility and so on. Yet, one type
of behavior has been paid less attention is the behavior of marriage. Nowadays, young women are more
different than the previous generation since they are able to profit from education. The occupational
structure of the labor force is being transformed, and the number of women pursuing higher education
has risen, then the relationship between women’s economic independence (resulting from higher
education and job offering) and age of first marriage has been one of the central topics among
demographers. According to many researchers for example Elder, 1972; Waite & Spitze, 1981, the
traditional path of determining age at first marriage among women is through an array of variables,
such as ethnicity, place of birth, birth order, number of siblings, women’s parents’ social class. Over a
long period of time, the scope of this area has been realized and the concentration of some papers
relating to this field has transferred from a mere determinant to the effects of educational and career
achievement on the time of entry into first marriage. (Bloom, 1990; Blossfeld and Huinink, 1991,
Oppenheimer, 1997).
This trend in research analysis is properly comprehensible with visible evidence of postwar era in
numerous countries. The more investment in education and opportunities for employment has induced
women to look for work in labor market, which leads to releasing from financial support of their
husbands and great success in career.
Moreover, marriage age has increased significantly in many developed countries around the world.
According to U.S. Census Bureau, 2010, the median marriage age for women and men in 1950-1960
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was 20 and 23 respectively; it increased to 27 and 29 in 2013. The situation is more serious for the case
of Germany, Netherlands, Denmark, United Kingdom, South Korea, Taiwan and many other countries
with the range from 29 to 32. A great number of studies had been done for Western Germany, for
instance, the paper of Diekmann (1990) found that the expansion of education has move the median
age of marry upward almost one year.
Although various researches have been conducted to identify the main factors of this trend among
advanced countries, (e.g Blossfeld & Huinink, 1991; Cherlin, 1980; Diekmann, 1989; Elder &
Rockwell, 1976; Hoem, 1985; Hoem & Hoem, 1987; Hogan, 1978; Huinink, 1987; Marini, 1985), very
few studies are undertaken for less developed countries.
Finally, marriage and fertility are connected processes, assuming that fertility often takes place within
marriage and contraceptive practices are non-existent, there is an inverse relationship between time at
first marriage and fertility. Specially, in a Southeast Asian country like Vietnam, where traditional
value is highly evaluated, woman must be married before having her first baby. As educational level
affects family formation, it also has direct impact on pregnancy decision. Women’s increased control
over fertility, a better chance to access to higher education, and a fall in discrimination will offer
women a stable income, Goldin and Katz (2002), Blau and Kahn (1997, 2000), so they tend to earn
more and more to prepare for children’s life.
In Viet Nam, the age of first marriage of women is 22.8 years of age. This figure did not change in the
last one and a half decade (source), while that of men increased from 25.2 to 26.2 from 1999 to 2009.
Age of first marriage of Vietnamese women is comparable to Southeast Asian countries, for example
Cambodia Thailand 21, Malaysia 25.7, Indonesia 22.3, but quite low comparing to that of developed
countries, for example Canada 29.1, UK 30 and the Netherlands 30.4. Women in these developed
countries obviously have higher education and career opportunities compared to Vietnamese women.
One question arises is that whether Vietnamese women delay their optimal time for first marriage and
birth change when having more education and career opportunities. And what is the association
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between education and delayed first marriage and childbirth? The answers to this question is quite
important for a range of policies, including family planning, schooling and education services, and the
planning of health care and child care services.
This paper is also to find out the answer for the questions and help to diminish the anxiety and distress
women have to encounter when their time of first children is delayed more than they or society expects.
1.2. RESEARCH OBJECTIVES
This study focuses on the question of how the improvement in women’s education affects their
marriage behavior and child-bearing decision, which is built on the “New home economics” theory. A
highly positive relation between years of schooling and marriage age is broadly accept; in other words,
higher educational level is a causal factor for marriage postponing. We will take into account some
hypothesis such as “independence hypothesis”, “specialization hypothesis”, “human capital effect”,
“institution effect” in order to answer the basic question is whether higher education level delays
marriage or if it also reduces marriage intensity. In order to answer this question, I use the technique of
“Survival analysis” to examine how the probability of entry into first marriage and motherhood
changes over ages.
Particularly in this study, the application of survival analysis will help investigating how education and
career change the rate of women entering first marriage and motherhood. This is to provide information
on the potential benefits of policies that improve women education and career opportunities.
In this paper, I intend to conduct an online survey for collecting data since there are no available
sources on the needed information for this estimation, particularly the data on age at first marriage or
first birth of women. Based on economic theory on marriage or childbearing and previous empirical
study, I identified several variables, including age-independence, social class, level of education, and
participation in the educational system and cohort membership in the analyses. These variables are
asked directly in the questionnaire and expected respondents are women aged from 18 or higher.
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This study is designed into 5 main parts to theoretically and empirically analyze how women education
or career development as well as social background affect to their decision on marriage and
childrearing
Chapter 2 postulates the social framework of theory that this paper is relied on. Particularly, the most
noticeable theory is the “New home economics” of Gary Becker (1981), which shed light on the
determinants of marriage and demand for children.
Chapter 3 represents the pattern through which data on women is collected and variables definition as
well as model estimation to contribute a reliable implication on this area.
Chapter 4 provides comprehensive results for the relationship that we have supposed from the
beginning until this part. It is expected to be consistent with the available theory.
Chapter 5 gives a final conclusion based on the transparent results in part 4, from this perception; this
paper will commit its limitation and infer some further studies.
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Chapter 2
Literature Review
2.1. THEORETICAL LITERATURE
This chapter first presents the theoretical literature about the decision of entry to marriage and
motherhood, particularly focusing on the impacts on education and career opportunity. This chapter
also reviews empirical studies on these issues. These theoretical and empirical reviews serve as the
basis for the analytical framework presented in Chapter 3.
2.1.1. Theory of Marriage & The division of Labor
In this section, I present the determinants of the benefits of marriage compared to single life for one
man and one woman. This will be the basis for analyzing the optimal timing of marriage.
Consider two persons, a male (M) and a female (F) to observe whether they should marry each other or
stay alone. “Marriage” is assumed to be the action of M and F share the same household and according
to Gary Becker (1981), the incentive for both men and women to marry is the gaining of marriage life;
in the aspect of economics, they can increase their utility after getting marriage. Utility depends not
only on the purchased goods and services in market place, but also on the commodities produced by
each household. These commodities include the quality of food, the quality and quantity of children,
reputation, entertainment, friendship, love and health status. Importantly, these goods are not
marketable or transferable between households, but only among members in the same household.
Consequently, they cannot be measured as a usual manner of other output, but we assume a single
aggregate (Z) is a combination of all these commodities. Maximizing utility thus becomes equal and
similar for each person to maximize the amount of Z that he or she receives. The production function of
each household which connects its total output of Z to different inputs is displayed below:
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Z = f (𝑥1,…. , 𝑥𝑚 ; 𝑡1 , … . , 𝑡𝑘 ; 𝐸)
(1)
In which 𝑥𝑖 are various market goods and services, 𝑡𝑗 is time inputs of different household members,
and E are “environmental” variables. The budget constrain for the 𝑥𝑖. can be written as:
∑𝑚 𝑝𝑖 𝑥𝑖 = ∑𝑘 𝑤𝑗 𝑙𝑗 + 𝑣
(2)
Where 𝑤𝑗 the wage rate of the jth member is, 𝑙𝑗 represents how much time a man spends on working in
the market sector, and v is the property income. 𝑙𝑗 and 𝑡𝑗 are related by the basic time constraint:
𝑙𝑗 + 𝑡𝑗 = T
(3)
Where the total time of each member is denoted by T, substituting (3) into (2), a single full income
constraint can be constructed by the combination of the goods and time constraints as (4)
∑𝑚 𝑝𝑖 𝑥𝑖 + ∑𝑘 𝑤𝑗 𝑡𝑗 = ∑𝑘 𝑤𝑗 𝑇 + 𝑣 = 𝑆
(4)
In which if the 𝑤𝑗 is unchanged, full income is appreviated by S – the maximum achievable income,
there is an assumption that a decrease in household’s total output (Z) cannot make any members better
off but some worse off. Hence, to maximize the total output Z, each member would not hesitate to
contribute his time and goods to this allocation. And necessary conditions to maximize Z include:
𝜕𝑍
)
𝜕𝑡𝑖
𝜕𝑍
𝑀𝑃𝑡𝑗 ≡( )
𝜕𝑡𝑗
𝑀𝑃𝑡𝑖 ≡(
𝑤
= 𝑤 𝑖 For all 0 < t < T
𝑗
(5)
If T is the household time of the 𝑘𝑡ℎ member, then
𝑀𝑃𝑡𝑘
𝑀𝑃𝑡𝑗
𝜇
= 𝑤𝑘
𝑗
(6)
Where 𝜇𝑘 ≥ 𝑤𝑘 is the “shadow” price of the time of k. Also
𝑀𝑃𝑥𝑖
=
𝑝𝑖
𝑀𝑃𝑡𝑗 𝑤𝑗
for all 𝑥𝑖 > 0 𝑎𝑛𝑑 0 < 𝑡𝑗 < 𝑇
(7)
Thus, there must be an appropriate allocation and cooperation in time between the market and
nonmarket sectors among each member. If a man and a woman are married, their household is assumed
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to contain only the two time inputs of them; in other words, we have ignored the time of children and
other people living in the same household.
From the equation (5) and (7), we can infer that female would specialize in nonmarket sector if 𝑤𝑚 /𝑤𝑓
or 𝑀𝑃𝑡𝑓 /𝑀𝑃𝑡𝑚 are sufficiently large.
Similarly, a single household allocates only his or her time between the nonmarket and market sectors
to satisfy equation (7). Specifically, single woman is more likely to work more than married woman
because they do not have time and goods supplied by the others partner.
If 𝑍𝑚0 𝑎𝑛𝑑 𝑍0𝑓 represent the maximum outputs of single man and woman, and 𝑚𝑚𝑓 𝑎𝑛𝑑 𝑓𝑚𝑓 are their
married incomes, a necessary condition for a man and a woman to marry is that the income after
married is higher than that if they remain single:
𝑚𝑚𝑓 ≥ 𝑍𝑚0
𝑓𝑚𝑓 ≥ 𝑍0𝑓
(8)
If 𝑚𝑚𝑓 +𝑓𝑚𝑓 , the total income achieved by the marriage, is identified with the output of the marriage, a
necessary condition for marriage is as below:
𝑚𝑚𝑓 + 𝑓𝑚𝑓 ≡ 𝑍𝑚𝑓 ≥ 𝑍𝑚0 + 𝑍0𝑓 (9)
The presence of children is considered as the most reasonable reason for marriage between men and
women. Children are the only subjects distinguishing single households from married households
because sexual demand, care for food and drink, washing and cleaning and many other things can be
served by money power, except own children. The strong emotion between the two individuals, called
“Love” is also a unique contribution to the purpose of marriage.
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Cost of marriage, income and the timing of marriage
Another important point is that the gain from marriage is also determined by market opportunities or
whether a rise in income encourages men and women to get marriage. The expenses of getting married
increases to the extent that the own time of man and woman enters into search and other marital costs.
Many couples can minimize the cost of regular communication and of transfering resource between
each other by sharing the same household or living together. As a result, this analysis anticipates that
acceleration in property income, and a higher level of wage rates, probably enhances the incentive to
marry. This implication proves a fact that poor people may marry earlier than rich persons but is
compatible with the empirical evidence. Likewise, this analysis shows that a rise in female’s wage
relative to male’s wage, holding the time in household sector constant, would reduce the return from
marriage if women’s wage is lower than men’s wage. Since single women work more than married
women and single men work less than married men, a growth in wage rate of women comparing to
men may reduce the incentive to marry.(Santos, 1970; Freiden 1972).
The traditional family model induces a comparative advantage of women over men in a family because
women invest mainly on human capital that raises household efficiency while men are expected to be
expert in labor market. Hence, “new home economics” suggests a gender-specific pattern of labor in
our society and mutual dependence between sexes are major incentives to marry. According to this
mechanism, the decline in specialization of women due to the increase in economic status (directly
resulted by educational expansion) has caused important consequences for marriage. First, it can be
explained that a successful woman in her career will be a less attractive partner because she cannot
focus on her main duty of home production. Second, women derive less profit from marriage if they
have less need on husband’s income; as a result, economic independence enables women to opt out of
marriage since they can afford themselves financial freedom. Benard (1972) or Raymo and Iwasawa
(2006) proved that high-status women may play an important role in reducing marriage rates.
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Education and the timing of marriage
“Specialization hypothesis” shows the impacts of education and training on marriage through two
causal paths “human capital effect” and “institution effect”.
“The institution effect” refers the longer the time an individual stays at school, the lower the possibility
for marriage because of three main assumptions proposed by Thornton (1995). Students are not
matured enough for adult role, students do not have time for other roles except studying, and married
people should be independent in financial aspects. Thus, spousal role and studying duty of students are
inappropriate. Under the division of labor, women tend to leave school when they married since they
have to spend most of their time for family. As a result, future income of women is also lessened
because they have sacrificed their investment in human capital for household work.
On the one hand, “human capital effect” has an essential impact on not only marriage, but also fertility
and marriage stability at the end of training or education level. Despite a higher possibility of stable
income in the future, investment on education creates higher opportunity costs for women. Therefore, it
is expected that educated women decrease the tendency to marry. Moreover, women with financial
independence will not gain much from marriage, and thus more of them will not marry at all.
If both effects operate, we can find out the combination of them. “Institution effect” increases the age
at marriage, and the “human capital effect” also raises the timing into marriage. As a result, we expect
a negative effect for both of them, since they move in the same direction.
Thirdly, we should consider the channels through which a woman may never get marriage, and
investigate how the above theory works in this case. “Institution effect” alone cannot let women
postpone their marriage forever, and then they will marry as the others lower-educated women do. This
should not have any special impacts on the proportion of never marry since there is not limit for the age
of marriage, while fertility is limited at a specific age. However, there is a debate as women are older,
they will be hard to find a potential partners since these partners are all already married, at this time,
“institution effect” seems to be effective. This argument may be not enough to persuade, as there are a
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lot of men who are staying at school, delayed marriage, too. Therefore, we predict that institution effect
will not appear in the proportion of never marriage. On the other hand, a negative human capital effect
shows a strong correlation since highly-educated people are least profited from family formation, so
most of them will not marry at all.
2.1.2. Theory of Marriage Market
The second conceptual framework I would like to mention is the Assortive mating in marriage markets.
Because of imperfect information, the process of finding best mates among men and women can be
very costly. When finding a good match, people tend to set up a minimum level of acceptance, not
trying to find a perfect one. Those whose conditions are lower than this limit of acceptability will
generally not be taken into account. However, there is a problem of detecting whether the searching for
a mate occurs or not, young people accidentally start to date when they were in their teens, this time is
usually much earlier than the time we assume they are looking for marital partners. Specifically,
searching for another half of one’s life is often going along with other activities – working, school,
entertainment activities and etc. A person may not look for a spouse but still find one. Given this
complication in searching for marital partners’ behavior, the most appropriate strategy may not focus
on whether there is an actual search, but to find out what conditions enables or induce successful
searches.
Assortative mating
Assortative mating in humans occurs based on a broad array of traits, including social economic,
characteristic, educational, residential, traditional, religious, and so on. In reality, there are many
evidences for assortative mating regarding to altruism. Many people in love reveals their similarities in
terms of their contributions to public improvement and charities, and generosity can be considered as a
proxy for mate choice instead of phenotypic convergence. (A. Tognetti, 2014). Another evidence
comes from the finding of Greenwood et al. (2015), which concludes couples also sort for appropriate
mate by educational levels and this trend tends to go upward overtime. Moreover, assortative mating by
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genomic similarities shows its significance in human marriages in the United States. In fact, spouses
are more genetically identical than two randomly chosen individuals.
Equilibrium conditions for Assortative Mating with Monogamy
Identical men receive the same income in an efficient marriage market regardless of whom they marry
or whether they choose to remain single. Since marriage with superior women produce larger outputs,
superior women receive higher incomes in efficient markets. The difference between the incomes of
the jth woman and the 𝑖𝑡ℎ woman would be:
𝑓
𝑓
𝑍𝑗 -𝑍𝑖 = (𝑍𝑚𝑗 − 𝑍 𝑚 ) − (𝑍𝑚𝑖 − 𝑍 𝑚 ) = 𝑍𝑚𝑗 − 𝑍𝑚𝑖
𝑓
Where 𝑍𝑘 is the equilibrium income of the 𝑘𝑡ℎ woman, 𝑍 𝑚 is the equilibrium income of men, and 𝑍𝑚𝑘
is the marital output of the 𝑘𝑡ℎ woman and any man. Superior women receive a premium that is
determined by their additional productivity as wives.
If each person is a utility maximizer and chooses the mate who maximizes his utility, the optimal
sorting must have the attribute that people not married to each other could not marry without making at
least one of them worse off. Utility is monotonically related to commodity income; therefore a noncore
marriage cannot produce more than the sum of the incomes that its two mates would receive in the
core. If it could produce more and if any division of output were feasible, a division could be found that
would make each better off, thereby contradicting the optimality of the core.
The mating of likes or unlike is optimal as attributes are complements or substitutes, because superior
people strengthen and support each other when traits are complements and compensate each other
when traits are substitutes. This theorem also implies that the benefit a woman can obtain from
marriage of a given quality is greater for an exceptional man when traits are complements, and is better
for an inferior man when traits are substitutes.
Positive assortative mating frequently occurs in an efficient marriage market, where superior men are
compatible with high-quality women, and inferior men are matched with low-quality women.
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However, negative assortative mating is sometimes important. Maximizing the aggregate output of
household commodities is also a feature of an efficient marriage market, where no one can raise the
value of his marriage without making others worse off. The return from marriage also correlates with
appearance, education, brilliance and other traits that have impacts on non-market productivity as well
as market opportunities. Holding the market productivity unchanged, the analysis of mate sorting refers
acceleration in the value of traits that affect to nonmarket productivity, would cause a higher demand in
marriage. That’s the reason why less brilliant or less appealing people are going to have a longer time
to marriage than those who are more enchanting and intelligent.
The analysis of positive mate sorting proves the fact that the time of seeking for a suitable match will
be extended as educational level increase. Women with high-educated level tend to find a man that has
similar or even higher educational level than them. The case will be more serious if a particular woman
has all those traits, like good-looking, intelligent, or well-educated.
From the above theory, I expect a negative relationship between women’s expansion level of education
and rate of entry into first marriage.
2.1.3. Theory of Fertility
Similarly to the mechanism of marriage, women’s fertility is also determined by social factors.
According to many researchers, the most suitable time for women to have their first child is when they
can achieve best result from their plan, including human capital investment and labor market career.
While man with a bright future plan for career and financial support to his family seems not having any
impacts on his wife’s decision of having a child. Postpone of demand for children can be explained in
the following economic framework (i) women have to scarify their time for taking care of their child
instead of being in the labor market. Moreover, investing in human capital which results in higher wage
is limited since they have no time for further education. These considered as opportunity cost, and
women will consider opportunity costs between becoming a mother and investing in their educational
level or establish her on labor market. Becker (1993) found cost of mother’s time is the most influential
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factor to the total cost of children. (ii) As soon as a particular woman has her baby, she must leave her
current job for a period of time to look after her son or daughter, this means the accumulated
experience will remain or even decrease and her skill for this job will also be affected negatively. Then,
most of them often choose to delay their major responsibility of being a mother.
Next, Mills et al. (2011) drew a conclusion on negative effect between education and fertility and this
idea can be supported by three main literature mechanisms. Firstly, the longer women stay in school,
the longer the timing of first marriage and first child, this is considered as the responsibility of delay in
first child (Blossfeld and Huinink, 1991). Secondly, women who invest more in human capital will
have higher probability of achieving success in their career, as a result, the opportunity cost of marriage
and giving birth also increases leading to lower fertility. (Becker 1991; Blossfeld and Huinink, 1991).
Thirdly, more educated women practice the individualism on their career and life more than less
educated one, so this discourages family formation and childbearing. (Lesthaeghe and Meekers 1987;
Liefbroer 2005; Mills et al., 2011).
As we have discussed above, Children are usually not purchased but are the products of marriage
between two people from opposite sex; though this process requires a huge sacrify in time of the
mothers. Each family has their own cost of consumption or different income, the cost of producing and
bearing children cannot be the same.
Assume 𝑃𝑛 denotes this cost and the cost of Z by πz, the budget constraint of a family equals:
𝑃𝑛 n + 𝜋𝑧 𝑍 = 𝐼
Where I is full income, given 𝑃𝑛 , 𝜋𝑧 and I, the the budget constraint and the marginal utility condition
are employed to determine optimal quantities of n and Z:
𝜕𝑈
𝜕𝑛⁄ =𝑀𝑈𝑛
𝜕𝑈 𝑀𝑈𝑧
=
𝑃𝑛
𝜋𝑧
𝜕𝑍
The relative price of children and full income are two main determinants of demand for children, thus,
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an increase in the relative price of children, in 𝑃𝑛 relative to 𝜋𝑧 , will lower the demand for children and
boost the demand for other commodities (where real income is held constant). The relative price of
children is affected by many variables, some unique to children, and several of the more important are
now considered. The evidence over hundreds of years indicates that farm families have been larger than
urban families. Part of the explanation is that food and housing, important inputs in the rearing of
children, have been cheaper on farms.
If children can help in household chores, family business or marketplace, then the net cost of children
will be reduced. Thus, along with the potential gain from children, the incentive for having children
also increases. In fact, farm families tend to have more children because children are considered more
productive for farming than in the cities. The contribution of farm children has declined as agriculture
has become more mechanized and complex in the course of economic development.
Both of these elements have motivated farm families to extend their children's schooling. Because rural
schools are often too small to be efficient; and it may take too much time and money for farm children
to attend school. The cost advantage of rearing children on farms has narrowed, as farm children have
spent more time at school. Consequently, nowadays, the fertility differentials between urban and rural
area have been narrowed in developed countries; while rural fertility is sometimes less than urban area
in some countries.
Furthermore, the better opportunities of women in labor market or the increase in the value of time of
married women has a significant impact on the relative cost of children. The higher income a woman
can obtain, the higher opportunities cost of rearing and producing children because cost of mother’s
time is the dominant cost of children. Indeed, over the last few decades, the steadily increase in earning
power of women has become the main explanation for both the large proportion of married women in
labor force participation and the major decrease in fertility. Since fathers have spent relatively little
time on children, the growth in their earning power has no significant impacts on the cost of children
and in fact would have reduced the relative cost if children used relatively less time of fathers than
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