A Joint Econometric Model of Marriage and Partner Choice

Elaina Rose

No UWEC-2004-23, Working Papers from University of Washington, Department of Economics

Abstract: OLS estimates of partner choice equations are biased when the unobservables determining partner choice are correlated with the unobservables determining the likelihood of marriage. This paper presents an example. A theoretical model generates a two-equation empirical model in which unobserverables are correlated a priori. Estimates of the model using data from the PSID indicate that men and women select positively into marriage. OLS estimates of the effects of education and race (black relative to white) on partner's education are biased downward.

Date: 2006-02
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