Assortative mating versus the cross-productivity effect
This paper shows how the allowance for unobserved ability and assortative mating will change the interpretation of the coefficient on own education in a log wage equation. Using data from Taiwan it is found that the coefficient on own education is almost zero but that on spouse's education is around 10%. The cross-productivity hypothesis cannot plausibly explain this puzzling result, but the model presented in this paper can.
Volume (Year): 6 (1999)
Issue (Month): 8 ()
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