Cohabitation versus Marriage: Mechanisms and dynamics

The aim of this project is to contribute to the understanding of the mechanisms and dynamics behind the choice between cohabitation and marriage, and how they affect the optimality of family and labor market policies and regulations. The first paper investigates the role of culture in the decision between cohabitation and marriage and its influence on the welfare effects of policies that increase the protection of cohabitors upon separation. The second paper studies how desired fertility drives the cohabitation versus marriage choice and evaluates the effects of pro-natalist policies. Finally, the third paper analyzes the behavioral responses of cohabiting and married couples to job loss and quantifies the importance of several consumption insurance mechanisms, shedding light on the optimal level of welfare benefits needed to counteract its adverse effects.