WATCH VIDEO HERE: https://youtu.be/I_M3RIMWju8
The economics of marriage is a detailed topic learnt under the labour economics subject. It involves looking at marriage through principles of economics like a market, demand and supply, opportunity cost, utility maximization, economies of scale etc.
This is not going to sound romantic but marriage, even in recent times, can seem like a business setup. Two people agree to go into a partnership, sign an agreement, get a license from the government, and bring resources together for shared goals.
Who is available, who marries who, and who is potentially suitable, makes the whole thing look like a market! Calling it a market probably does not sit well with many people, however, it's comparatively normal for the economists like Gary Becker.
Marriage is probably becoming more of an option than a necessity. But people marry because it makes economic sense among the other reasons. The video also discusses 'male marital wage premium' and motherhood penalty. It also highlights many economic advantages of marriage for example tax benefits, economies of scale, saving vs spending, home and car purchase, combining finances after marriage and so on.
“In sickness and in health”, also includes "in poverty and in wealth". So marriage comes with a lot of costs including mortgage, car leasing, health insurance, emergency budget for an unexpected financial crisis, saving funds, retirement plans, bills, and necessities, honeymoon, leisure & holidays, monthly expenses, long-term wishes, unexpected spending, pregnancy, and last but not the least, raising children. All this starts with the wedding ceremony which is a costly affair. Venues, catering, photography, dress, flowers and the ring, and tons of other expenses. Wedding planners and others who facilitate this happiness remain a very lucrative industry. The newer generations are fighting many traditions and advocating to lower the cost for many such spendings as sustainability and modesty are on the rise.
Divorce is also discusses like If the marriage breaks up, who would walk away with what? who owns what? Lawyers taking advantage of divorce settlements as well as high profile marriages.
#marriage #dating #divorce