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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. Jeremy Lise & Shannon Seitz, 2007. "Consumption inequality and intra-household allocations," IFS Working Papers, Institute for Fiscal Studies W07/09, Institute for Fiscal Studies.
  2. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2007. "The Collective Model of Household Consumption: A Nonparametric Characterization," Econometrica, Econometric Society, Econometric Society, vol. 75(2), pages 553-574, 03.
  3. Pierre-Andre Chiappori & Yoram Weiss & Murat Iyigun & Yoram Weiss, 2006. "Investment in Schooling and the Marriage Market," 2006 Meeting Papers, Society for Economic Dynamics 43, Society for Economic Dynamics.
  4. Blundell, Richard William & Chiappori, Pierre-André & Magnac, Thierry & Meghir, Costas, 2005. "Collective Labour Supply: Heterogeneity and Non-Participation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5287, C.E.P.R. Discussion Papers.
  5. Daniela Del Boca & Christopher J. Flinn, 2005. "Household Time Allocation and Modes of Behavior: A Theory of Sorts," CHILD Working Papers, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY wp15_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  6. Browning, M. & Chiappori, P.A., 1994. "Efficient Intra-Household allocations: A General Characterization and Empirical Tests," DELTA Working Papers, DELTA (Ecole normale supérieure) 94-16, DELTA (Ecole normale supérieure).
  7. 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.
  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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  10. Shelly Lundberg & Robert A. Pollak, 2001. "Efficiency in Marriage," NBER Working Papers 8642, National Bureau of Economic Research, Inc.
  11. Aloysius Siow, 2008. "How does the marriage market clear? An empirical framework," Working Papers, University of Toronto, Department of Economics tecipa-322, University of Toronto, Department of Economics.
  12. Daniela Del Boca & Christopher Flinn, 2009. "Endogeneous Household Interaction," Carlo Alberto Notebooks, Collegio Carlo Alberto 109, Collegio Carlo Alberto.
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  15. Richard Blundell & Martin Browning & Ian Crawford, 2002. "Nonparametric Engel Curves and Revealed Preference," CAM Working Papers 2002-04, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  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, Springer, vol. 4(4), pages 379-393, December.
  17. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche, Université Laval - Département d'économique 9810, Université Laval - Département d'économique.
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  19. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers, DELTA (Ecole normale supérieure) 89-07, DELTA (Ecole normale supérieure).
  20. Shannon N. Seitz, 2002. "Accounting for Racial Differences in Marriage and Employment," Working Papers, Queen's University, Department of Economics 1009, Queen's University, Department of Economics.
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  22. Thomas, D., 1989. "Intra-Household Resource Allocation: An Inferential Approach," Papers, Yale - Economic Growth Center 586, Yale - Economic Growth Center.
  23. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 56(1), pages 63-90, January.
  24. Gary S. Becker, 1974. "A Theory of Marriage: Part II," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 11-26 National Bureau of Economic Research, Inc.
  25. 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.
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  27. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 10(4), pages 139-158, Fall.
  28. 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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  31. repec:bla:restud:v:74:y:2007:i:2:p:507-535 is not listed on IDEAS
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Citations

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Cited by:
  1. Bruze, Gustaf, 2010. "Male and Female Marriage Returns to Schooling," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 10-17, University of Aarhus, Aarhus School of Business, Department of Economics.
  2. 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.
  3. Nicholas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," 2011 Meeting Papers 446, Society for Economic Dynamics.

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