Marriage settlements

French couples may choose between two types of marriage settlements governi ng asset ownership after a divorce or inheritance: common property or separ ate property. A cooperative model considers the marriage contract as a mean s of providing for widowhood of the less endowed spouse. A second model add resses the probability of divorce and the production of a marriage good. Th e common property contract then becomes a means of inducing the wife to inv est in the marriage good. Choice of contract, labor supply and fertility ar e simultaneous. Empirically we find that characteristics of the spouses suc h as relative age or differences in endowments influence the choice, So do the expected number of children and the wife's labor supply decision. This last decision is also shown to be influenced by the chosen settlement, whil e fertility is not.