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Matching and Sorting with Horizontal Heterogeneity

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Simon Clark ()

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Abstract

This paper examine a class of two-sided matching problems with non-transferable utility. Agents are horizontally differentiated, and each would prefer to be matched with a similar partner; in short, “like attracts like”. Although such preferences imply a unique stable matching, the degree of assortment in equilibrium is found to depend critically on the distribution of characteristics among the two sexes. In particular, the greater the difference between men and women, the greater the tendency to negative assortment. Constraints on who can match with whom may improve welfare and we interpret this as a theory of social stratification.

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Publisher Info
Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number 94.

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Length: 45
Date of creation: Mar 2004
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Handle: RePEc:edn:esedps:94

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Related research
Keywords: Matching; sorting; uniqueness; horizontal heterogeneity; marriage market; social stratification;

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Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Burdett, Kenneth & Coles, Melvyn G, 1999. "Long-Term Partnership Formation: Marriage and Employment," Economic Journal, Royal Economic Society, vol. 109(456), pages F307-34, June. [Downloadable!] (restricted)
  2. repec:att:wimass:199613 is not listed on IDEAS
  3. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
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  4. Patrick Legros & Andrew F. Newman, 2002. "Beauty is a Beast, Frog is a Prince: Assortative Matching with Nontransferabilities," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-149, Boston University - Department of Economics, revised Nov 2004. [Downloadable!]
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  5. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
  6. Kiyotaki, Nobuhiro & Wright, Randall, 1989. "On Money as a Medium of Exchange," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 927-54, August. [Downloadable!] (restricted)
  7. repec:att:wimass:1920122 is not listed on IDEAS
  8. Legros, Patrick & Newman, Andrew F, 2002. "Monotone Matching in Perfect and Imperfect Worlds," Review of Economic Studies, Blackwell Publishing, vol. 69(4), pages 925-42, October.
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  1. Ed Hopkins, 2005. "Job Market Signalling of Relative Position, or Becker Married to Spence," ESE Discussion Papers 134, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
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