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On Human Capital and Team Stability

Author

Listed:
  • Pierre-André Chiappori
  • Alfred Galichon
  • Bernard Salanié

Abstract

In many economic contexts, agents from the same population team up to better exploit their human capital. In such contexts (often called “roommate matching problems”), stable matchings may fail to exist even when utility is transferable. We show that when each individual has a close substitute, a stable matching can be implemented with minimal policy intervention. Our results shed light on the stability of partnerships in the labor market. Moreover, they imply that the tools crafted in empirical studies of the marriage problem can easily be adapted to many roommate problems.

Suggested Citation

  • Pierre-André Chiappori & Alfred Galichon & Bernard Salanié, 2019. "On Human Capital and Team Stability," Journal of Human Capital, University of Chicago Press, vol. 13(2), pages 236-259.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/702925
    DOI: 10.1086/702925
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    Cited by:

    1. Alfred Galichon & Bernard Salanié, 2024. "Estimating separable matching models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(6), pages 1021-1044, September.
    2. Edoardo Ciscato & Marion Goussé, 2024. "Matching on Gender and Sexual Orientation," SOEPpapers on Multidisciplinary Panel Data Research 1213, DIW Berlin, The German Socio-Economic Panel (SOEP).

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