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Marriage market equilibrium with matching on latent ability: Identification using a compulsory schooling expansion

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  • Dan Anderberg
  • Jesper Bagger
  • V. Bhaskar
  • Tanya Wilson

Abstract

We use the 1972 UK Raising of the School-Leaving Age (RoSLA) to identify and estimate an equilibrium marriage market model with sorting on academic qualifications and latent ability. Our identification hinges on a RoSLA-induced discontinuity in the distribution of qualifications. We disentangle the contributions of qualification and ability to marital surplus; we find that they are complements. Ability increases the probability of ever marrying; a basic qualification does not. The observed marriage gap between basic qualified and unqualified individuals is entirely due to selection on ability. The RoSLA worsened marital prospects of low ability individuals, through general equilibrium effects.

Suggested Citation

  • Dan Anderberg & Jesper Bagger & V. Bhaskar & Tanya Wilson, 2022. "Marriage market equilibrium with matching on latent ability: Identification using a compulsory schooling expansion," Working Papers 2022_11, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2022_11
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    References listed on IDEAS

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    More about this item

    Keywords

    Marriage; Assortative mating; Return to education; Latent ability;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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