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Assortative matching and search with labour supply and home production

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  • Nicolas Jacquemet
  • Jean-Marc Robin

    ()
    (Institute for Fiscal Studies and Sciences Po)

Abstract

We extend the search-matching model of the marriage market of Shimer and Smith (200) to allow for labour supply and home production. We characterise the steady-state equilibrium when exogenous divorce is the only source of risk. We study nonparametric identification using cross-section data on wages and hours worked, and we develop a nonparametric estimator. The estimated matching probabilities that can be derived from the steady-state flow conditions are strongly increasing in male and female wages. We estimate the expected share of marriage surplus appropriated by each spouse as a function of wages. The model allows to infer the specialisation of female spouses in home production from observations on wages and hours worked.

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Bibliographic Info

Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP07/13.

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Date of creation: Mar 2013
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Handle: RePEc:ifs:cemmap:07/13

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Related research

Keywords: search-matching; sorting; assortative matching; collective labour supply; structural estimation;

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References

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  1. Grossbard, Shoshana & Amuedo-Dorantes, Catalina, 2007. "Cohort-Level Sex Ratio Effects on Women’s Labor Force Participation," IZA Discussion Papers 2722, Institute for the Study of Labor (IZA).
  2. Grossbard-Shechtman, Shoshana Amyra, 1984. "A Theory of Allocation of Time in Markets for Labour and Marriage," Economic Journal, Royal Economic Society, vol. 94(376), pages 863-82, December.
  3. Bernard Salanié & Alfred Galichon, 2011. "Cupid's Invisible Hand: Social Surplus and Identification in Matching Models," Discussion Papers 1011-03, Columbia University, Department of Economics.
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Cited by:
  1. Bonilla, Roberto & Kiraly, Francis, 2013. "Marriage wage premium in a search equilibrium," Labour Economics, Elsevier, vol. 24(C), pages 107-115.
  2. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2014. "Household Consumption When the Marriage is Stable," Working Papers ECARES ECARES 2014-21, ULB -- Universite Libre de Bruxelles.
  3. Melvyn G Coles & Marco Francesconi, 2013. "Equilibrium Search and the Impact of Equal Opportunities for Women," Economics Discussion Papers 742, University of Essex, Department of Economics.
  4. Lkhagvasuren, Damba, 2014. "Education, mobility and the college wage premium," European Economic Review, Elsevier, vol. 67(C), pages 159-173.

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