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Assortative Matching and the Education Gap

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  • Ximena Peña

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Abstract

This paper attempts to explain the decrease and reversal of the education gap between males and females. Given a continuum of agents, the education decisions are modelled as an assignment game with endogenous types. In the first stage agents choose their education level and in the second they participate in the labor and marriage markets. Competition among potential matches ensures that the efficient education levels can always be sustained in equilibrium, but there may be inefficient equilibria. Combining asymmetries intrinsic to the modelled markets the model reproduces the observed education gap.

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Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 427.

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Handle: RePEc:bdr:borrec:427

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Keywords: Assortative matching; efficiency; gender; education. Classification JEL:;

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References

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  1. Gretsky, Neil E & Ostroy, Joseph M & Zame, William R, 1992. "The Nonatomic Assignment Model," Economic Theory, Springer, Springer, vol. 2(1), pages 103-27, January.
  2. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 21(1), pages 145-177, January.
  3. Raquel Fernández & Nezih Guner & John Knowles, 2005. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 120(1), pages 273-344, January.
  4. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . "Efficient Non-Contractible Investments in Large Economies," Penn CARESS Working Papers, Penn Economics Department e9e0aca257b20d3bb6bb4a52a, Penn Economics Department.
  5. Michael Peters & Aloysius Siow, 2001. "Competing Premarital Investment," Working Papers, University of Toronto, Department of Economics peters-01-02, University of Toronto, Department of Economics.
  6. Pierre-André Chiappori & Murat Iyigun & Yoram Weiss, 2009. "Investment in Schooling and the Marriage Market," American Economic Review, American Economic Association, American Economic Association, vol. 99(5), pages 1689-1713, December.
  7. Echevarria, Cristina & Merlo, Antonio, 1999. "Gender Differences in Education in a Dynamic Household Bargaining Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 265-86, May.
  8. Jim Albrecht & Aico van Vuuren & Susan Vroman, 2007. "Counterfactual Distributions with Sample Selection Adjustments: Econometric Theory and an Application to the Netherlands," Working Papers, Georgetown University, Department of Economics gueconwpa~07-07-06, Georgetown University, Department of Economics.
  9. Alejandro Badel & Ximena Peña, 2010. "Decomposing the GenderWage Gap with Sample Selection Adjustment: Evidence from Colombia," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 007725, UNIVERSIDAD DE LOS ANDES-CEDE.
  10. Goldin, Claudia & Kuziemko, Ilyana & Katz, Lawrence, 2006. "The Homecoming of American College Women: The Reversal of the College Gender Gap," Scholarly Articles 2962611, Harvard University Department of Economics.
  11. Harold L. Cole & George J. Mailath & Andrew Postlewaite, . ""Efficient Non-Contractible Investments''," CARESS Working Papres, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences 98-13, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  12. José-Víctor Ríos-Rull & Virginia Sánchez-Marcos, 2002. "College Attainment of Women," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 965-998, October.
  13. Axel Anderson & Lones Smith, 2006. "Assortative Matching and Reputation," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 1553, Cowles Foundation for Research in Economics, Yale University.
  14. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1777, Harvard - Institute of Economic Research.
  15. Iyigun, Murat & Walsh, Randall P., 2005. "Building the Family Nest: Pre-Marital Investments, Marriage Markets and Spousal Allocations," IZA Discussion Papers 1752, Institute for the Study of Labor (IZA).
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Cited by:
  1. Alejandro Badel & Ximena Peña, 2010. "Decomposing the GenderWage Gap with Sample Selection Adjustment: Evidence from Colombia," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 007725, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Raquel Bernal & Adriana Camacho & Carmen Elisa Flórez & Alejandro Gaviria, 2009. "Desarrollo económico: retos y políticas públicas," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 005269, UNIVERSIDAD DE LOS ANDES-CEDE.
  3. Diego Amador & Raquel Bernal & Ximena Peña, 2013. "The Rise in Female Participation in Colombia: Fertility, Marital Status or Education?," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 010551, UNIVERSIDAD DE LOS ANDES-CEDE.
  4. William H. J. Hubbard, 2011. "The Phantom Gender Difference in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 568-586.

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