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Marriage with Labor Supply

Author

Listed:
  • Nicolas Jacquemet

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Marc Robin

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

We propose a search-matching model of the marriage market that extends Shimer and Smith (2000) to allow for labor supply. We characterize the steady-state equilibrium when exogenous divorce is the only source of risk. The estimated matching probabilities that can be derived from the steady-state flow conditions are strongly increasing in both male and female wages. We estimate that the share of marriage surplus appropriated by the man increases with his wage and that the share appropriated by the woman decreases with her wage. We find that leisure is an inferior good for men and a normal good for women.

Suggested Citation

  • Nicolas Jacquemet & Jean-Marc Robin, 2011. "Marriage with Labor Supply," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01073728, HAL.
    • Handle: RePEc:hal:cesptp:hal-01073728
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-01073728
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    Cited by:

    1. Raquel Fernández & Joyce Cheng Wong, 2014. "Free to Leave? A Welfare Analysis of Divorce Regimes," NBER Working Papers 20251, National Bureau of Economic Research, Inc.
    2. Flabbi, Luca & Mabli, James, 2012. "Household Search or Individual Search: Does It Matter? Evidence from Lifetime Inequality Estimates," IZA Discussion Papers 6908, Institute of Labor Economics (IZA).
    3. Arnaud Dupuy & Alfred Galichon, 2014. "Personality Traits and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1271-1319.
    4. Pierre-André Chiappori & Monica Costa Dias & Costas Meghir, 2018. "The Marriage Market, Labor Supply, and Education Choice," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 26-72.
    5. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2016. "Technology and the Changing Family: A Unified Model of Marriage, Divorce, Educational Attainment, and Married Female Labor-Force Participation," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(1), pages 1-41, January.
    6. Alfred Galichon & Bernard Salanié, 2022. "Cupid’s Invisible Hand: Social Surplus and Identification in Matching Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(5), pages 2600-2629.
    7. Fernández, Raquel & Wong, Joyce Cheng, 2014. "Free to Leave? A Welfare Analysis of Divorce Regimes," CEPR Discussion Papers 10047, C.E.P.R. Discussion Papers.
    8. repec:spo:wpmain:info:hdl:2441/5rkqqmvrn4tl22s9mc0c7apsi is not listed on IDEAS
    9. Bernard Salanié & Alfred Galichon, 2012. "Cupid's Invisible Hand: Social Surplus and Identification in Matching Models," Working Papers hal-01053710, HAL.
    10. repec:spo:wpecon:info:hdl:2441/5rkqqmvrn4tl22s9mc0c7apsi is not listed on IDEAS
    11. repec:hal:spmain:info:hdl:2441/5rkqqmvrn4tl22s9mc0c7apsi is not listed on IDEAS
    12. Zvi Eckstein & Osnat Lifshitz, 2015. "Household Interaction And The Labor Supply Of Married Women," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(2), pages 427-455, May.
    13. John A. Knowles, 2013. "Why are Married Men Working So Much? An Aggregate Analysis of Intra-Household Bargaining and Labour Supply," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 1055-1085.
    14. repec:hal:wpspec:info:hdl:2441/5rkqqmvrn4tl22s9mc0c7apsi is not listed on IDEAS
    15. Pierre-André Chiappori & Costas Meghir, 2014. "Intrahousehold Inequality," NBER Working Papers 20191, National Bureau of Economic Research, Inc.
    16. Kenneth Burdett & Mei Dong & Ling Sun & Randall Wright, 2016. "Marriage, Markets, And Money: A Coasian Theory Of Household Formation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(2), pages 337-368, May.
    17. Christian Bayer & Klaus Waelde, 2011. "Describing the Dynamics of Distributions in Search and Matching Models by Fokker-Planck Equations," Working Papers 1110, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 21 Jul 2011.
    18. Clement Joubert & Sekyu Choi, 2012. "The value of remarriage," 2012 Meeting Papers 1111, Society for Economic Dynamics.
    19. Raquel Fernández & Joyce C. Wong, 2014. "Divorce Risk, Wages, and Working Wives: A Quantitative Life-Cycle Analysis of Female Labor Force Participation," NBER Working Papers 19869, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Marriage search model; Collective labor supply; Structural estimation;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • 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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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