Marriage Matters: Internal Migration and Marital Sorting in Indonesia
Abstract: This paper examines how location characteristics enter into the marriage decision, with a focus on differences between rural and urban locations and between economic activity. Using a structural matching model and data from Indonesia, I estimate utilities of matching and staying at home, migrating together, and marrying someone from another market. I find that couples migrating together face utility losses compared to those staying at home, and that urban destinations are typically preferred by migrants, both joint and independent. By simulating a marriage market in which joint migration becomes less costly, I quantify the substitution between joint migration and marriage migration. The results show that mixed marriages in urban locations are most responsive, primarily driven by rural couples forming at home and migrating together. On the other hand, restricting joint migration increases mixed marriages in urban destinations by up to 17 percentage points.
