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The Empirical Content of Marital Surplus in Matching Models

Author

Listed:
  • Doorley, Karina

    (Economic and Social Research Institute, Dublin)

  • Dupuy, Arnaud

    (University of Luxembourg)

  • Weber, Simon

    (KU Leuven)

Abstract

This note investigates the extent to which structural estimates of marital surplus are informative about subjective well-being and separation. We first estimate the marital surplus using a simple matching model of the marriage market with perfectly transferable utility and heterogeneity in tastes applied to a rich German panel dataset. We then show that these estimates of the marital surplus are negatively correlated with separation and the difference in spouses' subjective satisfaction.

Suggested Citation

  • Doorley, Karina & Dupuy, Arnaud & Weber, Simon, 2018. "The Empirical Content of Marital Surplus in Matching Models," IZA Discussion Papers 11823, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp11823
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    Keywords

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D1 - Microeconomics - - Household Behavior

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