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Becker meets Ricardo: A social and cognitive skills model of human capabilities

  • Xianwen Shi

    (University of Toronto)

  • Ronald Wolthoff

    (University of Toronto)

  • Aloysius Siow

    (University of Toronto)

  • Robert McCann

    (University of Toronto)

This paper studies an equilibrium model of social and cognitive skills interactions in school, work and marriage. The model uses a common team production function in each sector which integrates the complementarity concerns of Becker with the task assigment and comparative advantage concerns of Ricardo. The theory delivers full task specialization in the labor and education markets, incomplete task specialization in marriage. It rationalizes many to one matching, a common feature in labor markets. There is also occupational choice, matching by different skills in different sectors. Equilibrium is equivalent to the solution of an utilitarian social planner solving a linear programming problem.

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Paper provided by Society for Economic Dynamics in its series 2012 Meeting Papers with number 32.

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Date of creation: 2012
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Handle: RePEc:red:sed012:32
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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