Income Convergence and Assimilation in a Two-Sided Matching Model

Linda Wong ()

No 1393, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: This paper develops a method suggested by the theory to estimate the structural parameters of a two-sided matching model in the context of a marriage market. A discrete marriage index is proposed to rank individuals’ measured attributes, and a matching algorithm is proposed to solve for the acceptable pool of partners numerically following the optimal reservation-match policy in the model. Estimation is based on imbedding the numerical solution of a matching model within a maximum-likelihood procedure. The structural estimation provides a unified treatment of stochastic processes that govern both marriage offers and separation and the acceptability of partners. Results from Monte Carlo experiments support the stability of the method. The usefulness of the technique is investigated through an application to the Panel Study of Income and Dynamics (1968-1993). Methods of correcting for unobserved heterogeneity are proposed.

Date: 2000-08-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://fmwww.bc.edu/RePEc/es2000/1393.pdf main text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecm:wc2000:1393

Access Statistics for this paper

More papers in Econometric Society World Congress 2000 Contributed Papers from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().