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How Does Matching Uncertainty Affect Marital Surplus? Theory and Evidence from China

Author

Listed:
  • Li Han

    (Division of Social Science, The Hong Kong University of Science and Technology)

  • Xinzheng Shi

    (Tsinghua University)

  • Ming-ang Zhang

    (Central University of Finance and Economics)

Abstract

Information quality affects matching and marital outcomes. We show in a simple two-dimensional matching model that a noisier cue for one trait leads to a shift in sorting tradeoff toward the other, lowers average welfare but the impact is asymmetric. To test the predictions, we explore the repeal of mandatory premarital health examinations in China. The repeal, increasing health cue noise, is found to have reduced postmarital subjective well-being mainly through a reduction in child health associated with decreased sorting by health. The deterioration was particularly strong for women and the poor, suggesting entrenched inequality by gender and wealth.

Suggested Citation

  • Li Han & Xinzheng Shi & Ming-ang Zhang, 2022. "How Does Matching Uncertainty Affect Marital Surplus? Theory and Evidence from China," HKUST CEP Working Papers Series 202202, HKUST Center for Economic Policy.
    • Handle: RePEc:hke:wpaper:wp2022-02
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    More about this item

    Keywords

    Premarital Health Examination; Subjective Well-being; Assortative Matching; Sorting Tradeoff; Inequality;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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