Study: Increased Marriage Rate Would Benefit Economy

Study: Increased Marriage Rate Would Benefit Economy

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3481995176_aca2bc4528Married Americans spend more than those in any other marital status category, across age groups. Americans who have never married spend significantly less, particularly for those younger than 50, suggesting that if the marriage rate increases, overall spending in the U.S. may increase and benefit the U.S. economy.

Married Americans report a daily spending average of $102, followed by $98 among those who are living in domestic partnerships, $74 by divorced Americans, $67 by those who are single and never married, and $62 by those who are widowed. As shown in the accompanying graph, across all age groups, those who are married spend more than those of other marital statuses.

Gallup asked Americans to report how much money they spent the prior day, excluding payments for normal household bills and major purchases such as homes or cars. The figure gives an estimate of discretionary spending. The current analysis is based on January through September 2013 Gallup Daily tracking interviews with more than 130,000 U.S. adults.

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These results suggest that if more Americans are married, and fewer are single/never married, overall spending might increase. Similarly, if more Americans are in domestic partnerships and fewer are single, that too would appear to be related to higher spending.

The Relevance of Income

Married Americans spend more than the average American in part because they have higher-than-average incomes. Single Americans spend less, at least in part because they have lower-than-average incomes. Those in domestic partnerships spend almost as much as those who are married but have lower average incomes, similar to single Americans’ incomes, suggesting that domestic partners in some sense overspend what would be predicted from their incomes alone. This hypothesis is supported by additional research showing that those in domestic partnerships have a relatively high rate of spending when income and other demographic factors are controlled for.

Conclusions

The U.S. marriage rate has declined in recent years, but recent Gallup analysis shows that it is possible that the marriage rate in the United States will go up in the future, based on a pent-up demand for marriage. Based on the spending habits of married Americans compared with their single counterparts who have never married, such a change could be expected to give a boost to the economy, if those marriages come from the ranks of those who are single/never married. Similarly, an increase in the percentage of Americans living in domestic partnerships as opposed to being single would have an apparently positive impact on the economy. If, however, Americans in the future become less likely to jump from single status to marriage and more likely to move into domestic partnerships, the impact on the economy would be less significant.

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