ABSTRACT
As mentioned in the theory of marriage presented earlier in this book (Chapter 4), marriage formality is viewed as an indication of commitment and loyalty. The fact that a particular man and woman are bound by a formal marriage, instead of living together informally, could indicate that the woman has a higher value on the marriage market. This chapter expands the hypotheses regarding cohabitation and marriage formality that were presented in Chapter 4. Most of the hypotheses are then tested with data from Guatemala (the 1974 Rand-INCAP survey). This chapter contributes to our understanding of formality and loyalty in marriage. It could possibly also be useful for studies of moral hazard and loyalty in the labor market. 1
