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Testing Becker's Theory of Positive Assortative Matching

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  • Aloysius Siow

Abstract

In a static frictionless transferable utilities bilateral matching market with systematic and idiosyncratic payoffs, supermodularity of the match output function implies a strong form of positive assortative matching: The equilibrium matching distribution has all positive local log odd ratios or totally positive of order 2 (TP2). A strong form of a preference for own type implies supermodularity of the match output function. It has additional restrictions on local odds ratios. Local odds ratios are not informative on whether a bilateral matching market equilibrates with or without transfers. Using white married couples in their thirties from the US 2000 census, spousal educational matching obeyed TP2 except for less than 0.2% of marriages with extreme spousal educational disparities. Using the TP2 order, there were more positive assortative matching by couples living in SMSA's than those who do not; but not more positive assortative matching in 2000 than in 1970. There were increases in specific local log odds over that period.

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-356.

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Length: 38 pages
Date of creation: 15 Apr 2009
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-356

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Keywords: matching; marriage; education; local log odds; TP2; United States;

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Citations

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Cited by:
  1. Steven N. Durlauf & Yannis M. Ioannides, 2009. "Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0739, Department of Economics, Tufts University.
  2. Peter Arcidiacono & Andrew W. Beauchamp & Marjorie B. McElroy, 2010. "Terms of Endearment: An Equilibrium Model of Sex and Matching," NBER Working Papers 16517, National Bureau of Economic Research, Inc.
  3. Gustaf Bruze & Michael Svarer & Michael Yoram Weiss, 2012. "The Dynamics of Marriage and Divorce," Economics Working Papers 2012-06, School of Economics and Management, University of Aarhus.
  4. Anderson, Gordon & Leo, Teng Wah, 2013. "An empirical examination of matching theories: The one child policy, partner choice and matching intensity in urban China," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 468-489.

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