Initial information and successful marriage: Evidence from Chinese Couples

Ginger Jin, University of Maryland
Lixin Colin Xu, World Bank Group

Using a unique survey of 10,000 Chinese couples in 1991, this paper evaluates the impact of marriage market on marriage quality. Unlike previous studies, we characterize marriage market by matchmaking means rather than sex ratios. Specifically, we compare four matchmaking means -- self match, parental arrangement, parental introduction, and friend introduction -- and associate them with various economic outcomes after marriage. Since individuals may intentionally choose the matchmaking means before marriage, we instrument it by the typical matchmaking methods used by the similar age group in the same local area. We find that couples matched by self or friend introduction have the highest family incomes and fewest domestic conflicts, while couples married by parental arrangement experience the worst marriage quality. This finding can be explained by a high agency cost in parent matchmaking and a beneficial market expansion effect from friend introduction.