Assortative mating versus the cross-productivity effect
Pak-Wai Liu and
Applied Economics Letters, 1999, vol. 6, issue 8, 523-525
This paper shows how the allowance for unobserved ability and assortative mating will change the interpretation of the coefficient on own education in a log wage equation. Using data from Taiwan it is found that the coefficient on own education is almost zero but that on spouse's education is around 10%. The cross-productivity hypothesis cannot plausibly explain this puzzling result, but the model presented in this paper can.
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