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Male Investment in Schooling with Frictional Labour and Marriage Markets

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  • Roberto Bonilla
  • Francis Kiraly

Abstract

We present an equilibrium model with inter-linked frictional labour and marriage markets. Women’s flow value of being single is treated as given, and it captures returns from employment. Single unemployed men conduct a so-called constrained sequential job search, and can choose to improve their labour market returns as well as their marriage prospects by undertaking a costly ex-ante investment in schooling. We establish the existence of market equilibria where a fraction of men get educated, and show that this fraction decreases if women’s labour market returns increase. We also examine the robustness of such equilibria.

Suggested Citation

  • Roberto Bonilla & Francis Kiraly, 2019. "Male Investment in Schooling with Frictional Labour and Marriage Markets," CESifo Working Paper Series 7901, CESifo.
    • Handle: RePEc:ces:ceswps:_7901
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    References listed on IDEAS

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    5. Roberto Bonilla & Francis Kiraly & John Wildman, 2019. "Beauty Premium And Marriage Premium In Search Equilibrium: Theory And Empirical Test," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 851-877, May.
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    1. Roberto Bonilla & Francis Kiraly & John Wildman, 2022. "Marriage premium with productivity heterogeneity," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 317-328, January.
    2. Roberto Bonilla & Francis Z. Kiraly & John Wildman, 2017. "Marriage Premium and Class," CESifo Working Paper Series 6550, CESifo.

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    More about this item

    Keywords

    returns to education; frictional markets; constrained search;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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