Economics > It's Almost as if Financial Incentives Matter
Via Marginal Revolutiions. 98% of married couples in a Chinese village divorced in a short time. But instead of displaying tension or tears, the couples waiting in line at the local registry to end their marriages were practically jolly. They believed they were taking advantage of a legal loophole that allowed them to get an extra apartment.
As they understood the compensation deal, each married couple would receive a small two-bedroom apartment in return for their land and farmhouse. Those divorced would get a one-bedroom apartment each. The villagers figured that would be a better deal, that they could live in one apartment and make a little extra income from selling or renting out the extra one.
Posted by lesjones
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