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Assortative matching and search with labor supply and home production

  • Nicolas Jacquemet

    (Institute for Fiscal Studies)

  • Jean-Marc Robin


    (Institute for Fiscal Studies and cemmap and Sciences Po)

We extend the search-matching model of the marriage market of Shimer and Smith (200) to allow for labor 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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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP07/13.

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Date of creation: Mar 2013
Date of revision:
Handle: RePEc:ifs:cemmap:07/13
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  1. 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.
  2. repec:clu:wpaper:1011-03 is not listed on IDEAS
  3. 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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