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Bidimensional Matching with Heterogeneous Preferences: Smoking in the Marriage Market

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  • Climent Quintana-Domeque
  • Pierre-Andre Chiappori
  • Sonia Oreffice

Abstract

We develop a bidimensional matching model under transferable utility, where individuals are characterized by a continuous trait (e.g., socioeconomic status) and a binary attribute (e.g., smoking status). The model is "truly multidimensional", in the sense that the impact of the traits cannot be summarized by a one-dimensional index. We present a general resolution strategy based on optimal control theory, and characterize the stable matching. We derive testable predictions about equilibrium matching patterns. Using US data, we find that the observed marital sorting of smokers and non-smokers by education is consistent with our model.

Suggested Citation

  • Climent Quintana-Domeque & Pierre-Andre Chiappori & Sonia Oreffice, 2014. "Bidimensional Matching with Heterogeneous Preferences: Smoking in the Marriage Market," Economics Series Working Papers 696, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:wpaper:696
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    More about this item

    Keywords

    Marriage market; multidimensional matching; continuous and discrete characteristics; heterogeneous preferences;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics

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