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Assortative mating versus the cross-productivity effect

Pak-Wai Liu and Junsen Zhang

Applied Economics Letters, 1999, vol. 6, issue 8, 523-525

Abstract: 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.

Date: 1999
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