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Bidimensional Matching with Heterogeneous Preferences: Smoking in the Marriage Market

Climent Quintana-Domeque, Pierre Chiappori and Sonia Oreffice

No 696, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: We develop a bidimensional matching model under transferable utility, where individuals are characterized by a continuous trait (e.g., socioeconomic status) and a binary attribute (e.g., smoking status). The model is "truly multidimensional", in the sense that the impact of the traits cannot be summarized by a one-dimensional index. We present a general resolution strategy based on optimal control theory, and characterize the stable matching. We derive testable predictions about equilibrium matching patterns. Using US data, we find that the observed marital sorting of smokers and non-smokers by education is consistent with our model.

Keywords: Marriage market; multidimensional matching; continuous and discrete characteristics; heterogeneous preferences (search for similar items in EconPapers)
JEL-codes: D1 J1 (search for similar items in EconPapers)
Date: 2014-01-29
New Economics Papers: this item is included in nep-dcm, nep-ger, nep-gth and nep-upt
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