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Marriage with labor supply

We propose a search-matching model of the marriage market that extends Shimer and Smith (2000) to allow for labor supply. We characterize the steady-state equilibrium when exogenous divorce is the only source of risk. The estimated matching probabilities that can be derived from the steady-state flow conditions are strongly increasing in both male and female wages. We estimate that the share of marriage surplus appropriated by the man increases with his wage and that the share appropriated by the woman decreases with her wage. We find that leisure is an inferior good for men and a normal good for women.

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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 11050.

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Length: 35 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:mse:cesdoc:11050
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  1. Pierre-André Chiappori & Murat Iyigun & Yoram Weiss, 2008. "An Assignment Model with Divorce and Remarriage," Working Papers 2009-002, Becker Friedman Institute for Research In Economics.
  2. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2003. "Wage bargaining with on-the-job search : theory and evidence," Research Unit Working Papers 0212, Laboratoire d'Economie Appliquee, INRA.
  3. Eeckhout, Jan, 1999. "Bilateral Search and Vertical Heterogeneity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(4), pages 869-87, November.
  4. Eugene Choo & Shannon Seitz & Aloysius Siow, 2008. "The Collective Marriage Matching Model: Identification, Estimation and Testing," Working Papers tecipa-340, University of Toronto, Department of Economics.
  5. Del Boca, Daniela & Flinn, Christopher, 2009. "Endogeneous Household Interaction," IZA Discussion Papers 4377, Institute for the Study of Labor (IZA).
  6. Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992. "Incomes and Outcomes: A structural Model of Intra-Household Allocation," DELTA Working Papers 92-23, DELTA (Ecole normale supérieure).
  7. Michael J. Brien, 1997. "Racial Differences in Marriage and the Role of Marriage Markets," Journal of Human Resources, University of Wisconsin Press, vol. 32(4), pages 741-778.
  8. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2002. "Collective Labor Supply: Heterogeneity and Nonparticipation," Research Unit Working Papers 0210, Laboratoire d'Economie Appliquee, INRA.
  9. Linda Y. Wong, 2003. "Structural Estimation of Marriage Models," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 699-728, July.
  10. Daniela Del Boca & Christopher J. Flinn, 2005. "Household Time Allocation and Modes of Behavior: A Theory of Sorts," CHILD Working Papers wp15_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  11. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
  12. Pierre-Andre Chiappori & Yoram Weiss, 2006. "Divorce, Remarriage, and Welfare: A General Equilibrium Approach," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 415-426, 04-05.
  13. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
  14. Jan Eeckhout & Philipp Kircher, 2010. "Sorting and decentralized price competition," LSE Research Online Documents on Economics 29705, London School of Economics and Political Science, LSE Library.
  15. Sattinger, Michael, 1995. "Search and the Efficient Assignment of Workers to Jobs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(2), pages 283-302, May.
  16. 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.
  17. Shannon Seitz, 2009. "Accounting for Racial Differences in Marriage and Employment," Journal of Labor Economics, University of Chicago Press, vol. 27(3), pages 385-437, 07.
  18. 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.
  19. Elizabeth M. Caucutt & Nezih Guner & John Knowles, 2002. "Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 815-855, October.
  20. S. Rao Aiyagari & Jeremy Greenwood & Nezih Guner, 2000. "On the State of the Union," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 213-244, April.
  21. Nezih Guner & Jeremy Greenwood & John A. Knowles, 2000. "Women on Welfare: A Macroeconomic Analysis," American Economic Review, American Economic Association, vol. 90(2), pages 383-388, May.
  22. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
  23. Pierre-André Chiappori & Yoram Weiss, 2007. "Divorce, Remarriage, and Child Support," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 37-74.
  24. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  25. Gould, Eric D & Paserman, M. Daniele, 2002. "Waiting for Mr Right: Rising Inequality and Declining Marriage Rates," CEPR Discussion Papers 3388, C.E.P.R. Discussion Papers.
  26. Pierre-André Chiappori & Sonia Oreffice, 2008. "Birth Control and Female Empowerment: An Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 116(1), pages 113-140, 02.
  27. Chiappori, Pierre-André & Donni, Olivier, 2009. "Non-unitary Models of Household Behavior: A Survey of the Literature," IZA Discussion Papers 4603, Institute for the Study of Labor (IZA).
  28. Shelly J. Lundberg & Robert A. Pollak & Terence J. Wales, 1997. "Do Husbands and Wives Pool Their Resources? Evidence from the United Kingdom Child Benefit," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 463-480.
  29. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July.
  30. Jan Eeckhout, 1996. "Bilateral Search and Vertical Heterogeneity," STICERD - Theoretical Economics Paper Series /1996/315, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  31. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
  32. Eugene Choo & Aloysius Siow, 2006. "Who Marries Whom and Why," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 175-201, February.
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