ABSTRACT
The theory of allocation of time in markets for labor and marriage presented in Part Two of this book also leads to a theoretical analysis of labor supply and divorce. The theoiy presented here focusses on income effects on labor supply and divorce. It gives some reasons why it is important to estimate income effects on labor supply and divorce simultaneously. Results are then reported for such joint estimation. This chapter also offers new interpretations of results from simultaneous empirical analyses of divorce and labor supply other than the ones presented here, and contributes to the methodological debate regarding the usefulness of experimental data.
