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Assortative matching and search with labor supply and home production

Nicolas Jacquemet () and Jean-Marc Robin ()

No CWP07/13, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract: We extend the search-matching model of the marriage market of Shimer and Smith (200) to allow for labor supply and home production. We characterise the steady-state equilibrium when exogenous divorce is the only source of risk. We study nonparametric identification using cross-section data on wages and hours worked, and we develop a nonparametric estimator. The estimated matching probabilities that can be derived from the steady-state flow conditions are strongly increasing in male and female wages. We estimate the expected share of marriage surplus appropriated by each spouse as a function of wages. The model allows to infer the specialisation of female spouses in home production from observations on wages and hours worked.

Keywords: search-matching; sorting; assortative matching; collective labour supply; structural estimation (search for similar items in EconPapers)
JEL-codes: C78 D83 J12 J22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-dge, nep-ecm and nep-gth
Date: 2013-03-11
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Persistent link: https://EconPapers.repec.org/RePEc:ifs:cemmap:07/13

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