Marriage entry, divorce and reconciliation: The unintended consequence of the home purchase restriction policy in China

This study investigates the unintended socioeconomic consequences of China's home purchase restriction (HPR) policy on marriage and divorce patterns. Using Becker's economic theory of marriage, the study analyzes how HPR affects family formation and dissolution across different city tiers and age groups. Findings reveal that while HPR decreased house prices, it also led to delayed marriages among younger groups, particularly in first-tier cities. Furthermore, the policy inadvertently encouraged strategic divorces to circumvent purchase restrictions, undermining its effectiveness. The study highlights the complex interplay between housing market regulations and family demographics, emphasizing the need for policymakers to consider broader societal impacts.

Zheng Chang, Weifeng Li, Mi Diao, Xin Li