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The Collective Marriage Matching Model: Identification, Estimation and Testing

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  • Eugene Choo
  • Shannon Seitz
  • Aloysius Siow

Abstract

We develop and estimate an empirical collective model with endogenous marriage formation, participation, and family labor supply. Intra-household transfers arise endogenously as the transfers that clear the marriage market. The intra-household allocation can be recovered from observations on marriage decisions. Introducing the marriage market in the collective model allows us to independently estimate transfers from labor supplies and from marriage decisions. We estimate a semi-parametric version of our model using 2000 US Census data. Estimates of the model using marriage data are much more consistent with the theoretical predictions than estimates derived from labor supply.

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-340.

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Length: 67 pages
Date of creation: 09 Oct 2008
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-340

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Keywords: collective model; marriage matching; intrahousehold allocations;

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References

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  1. Steven Stern & Michael J. Brien & Lee A. Lillard, 1999. "Cohabitation, Marriage, and Divorce in a Model of Match Quality," Virginia Economics Online Papers 322, University of Virginia, Department of Economics.
  2. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
  3. Catalina Amuedo-Dorantes & Shoshana Grossbard, 2007. "Cohort-level sex ratio effects on women’s labor force participation," Review of Economics of the Household, Springer, vol. 5(3), pages 249-278, September.
  4. Blundell, Richard & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Nonparticipation," IDEI Working Papers 373, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. Pierre-Andre Chiappori & Yoram Weiss & Murat Iyigun & Yoram Weiss, 2006. "Investment in Schooling and the Marriage Market," 2006 Meeting Papers 43, Society for Economic Dynamics.
  6. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  7. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S11-S26, Part II, .
  8. Esther Duflo, 2000. "Grandmothers and Granddaughters: Old Age Pension and Intra-household Allocation in South Africa," NBER Working Papers 8061, National Bureau of Economic Research, Inc.
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  15. Murat Nick & P. Randall Walsh, 2007. "Building the Family Nest: Premarital Investments, Marriage Markets, and Spousal Allocations," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 507-535.
  16. Kosei Fukuda, 2006. "A cohort analysis of female labor participation rates in the U.S. and Japan," Review of Economics of the Household, Springer, vol. 4(4), pages 379-393, December.
  17. Shannon Seitz & Jeremy Lise, 2005. "Consumption Inequality and Intra-Household Allocations," 2005 Meeting Papers 448, Society for Economic Dynamics.
  18. Shannon Seitz, 2009. "Accounting for Racial Differences in Marriage and Employment," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 385-437, 07.
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  22. Aloysius Siow, 2008. "How does the marriage market clear? An empirical framework," Working Papers tecipa-322, University of Toronto, Department of Economics.
  23. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
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  25. Shelly Lundberg & Robert Pollak, 2003. "Efficiency in Marriage," Review of Economics of the Household, Springer, vol. 1(3), pages 153-167, September.
  26. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
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  28. repec:bla:restud:v:74:y:2007:i:2:p:507-535 is not listed on IDEAS
  29. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
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  31. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche 9810, Université Laval - Département d'économique.
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Citations

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Cited by:
  1. Nicholas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," 2011 Meeting Papers 446, Society for Economic Dynamics.
  2. Pierre-Andre Chiappori & Murat Iyigun & Yoram Weiss, 2006. "Investment in Schooling and the Marriage Market," DEGIT Conference Papers c011_034, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. repec:hal:cesptp:halshs-00639313 is not listed on IDEAS
  4. Bruze, Gustaf, 2010. "Male and Female Marriage Returns to Schooling," Working Papers 10-17, University of Aarhus, Aarhus School of Business, Department of Economics.

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