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On Human Capital and Team Stability

Author

Listed:
  • Pierre-André Chiappori

    (Columbia University [New York])

  • Alfred Galichon

    (NYU - New York University [New York] - NYU - NYU System, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

  • Bernard Salanié

    (Columbia University [New York])

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," SciencePo Working papers Main hal-03898494, HAL.
    • Handle: RePEc:hal:spmain:hal-03898494
    DOI: 10.1086/702925
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03898494
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    References listed on IDEAS

    as
    1. Chung, Kim-Sau, 2000. "On the Existence of Stable Roommate Matchings," Games and Economic Behavior, Elsevier, vol. 33(2), pages 206-230, November.
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