Assortative matching and search with labour supply and home production
We extend the search-matching model of the marriage market of Shimer and Smith (200) to allow for labour supply and home production. We characterise the steady-state equilibrium when exogenous divorce is the only source of risk. We study nonparametric identification using cross-section data on wages and hours worked, and we develop a nonparametric estimator. The estimated matching probabilities that can be derived from the steady-state flow conditions are strongly increasing in male and female wages. We estimate the expected share of marriage surplus appropriated by each spouse as a function of wages. The model allows to infer the specialisation of female spouses in home production from observations on wages and hours worked.
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernard Salanié & Alfred Galichon, 2012.
"Cupid's Invisible Hand: Social Surplus and Identification in Matching Models,"
Sciences Po publications
info:hdl:2441/5rkqqmvrn4t, Sciences Po.
- Bernard Salanié & Alfred Galichon, 2011. "Cupid's Invisible Hand: Social Surplus and Identification in Matching Models," Discussion Papers 1011-03, Columbia University, Department of Economics.
- Shoshana Grossbard & Catalina Amuedo-Dorantes, 2008.
"Cohort-level sex ratio effects on women’s labor force participation,"
Review of Economics of the Household,
Springer, vol. 6(3), pages 309-309, September.
- Catalina Amuedo-Dorantes & Shoshana Grossbard, 2007. "Cohort-level sex ratio effects on women’s labor force participation," Review of Economics of the Household, Springer, vol. 5(3), pages 249-278, September.
- Grossbard, Shoshana & Amuedo-Dorantes, Catalina, 2007. "Cohort-Level Sex Ratio Effects on Women’s Labor Force Participation," IZA Discussion Papers 2722, Institute for the Study of Labor (IZA).
- Grossbard-Shechtman, Shoshana Amyra, 1984. "A Theory of Allocation of Time in Markets for Labour and Marriage," Economic Journal, Royal Economic Society, vol. 94(376), pages 863-82, December.
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