On the state of the union

An overlapping generations model of marriage and divorce is constructed to analyze family structure and intergenerational mobility. Agents differ by s ex, marital status, and human capital. Single agents meet in a marriage mar ket and decide whether to accept or reject proposals to wed. Married couple s must decide whether to separate or not. Parents invest in their children depending on their wherewithal. A simulated version of die theoretical prot otype can generate an equilibrium with a significant number of female-heade d families and a high degree of persistence in income across generations. T o illustrate the model's mechanics, the effects of two antipoverty policies , namely child support and welfare, are investigated.