Marriage with Labour Supply

Jacquemet, Nicolas; Robin, Jean-Marc

doi:10.2139/ssrn.1947152

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Marriage with Labour Supply

34 Pages Posted: 21 Oct 2011

See all articles by Nicolas Jacquemet

Nicolas Jacquemet

Paris School of Economics (PSE); Université Paris I Panthéon-Sorbonne

École Normale Supérieure (ENS) - Laboratoire d'Economie Theorique et Appliquee (LEA); National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); French National Institute for Agricultural Research (INRA); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: September 1, 2011

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.

Keywords: marriage search model, collective labor supply, structural estimation

JEL Classification: C78, D83, J12, J22

Suggested Citation: Suggested Citation

Jacquemet, Nicolas and Robin, Jean-Marc, Marriage with Labour Supply (September 1, 2011). Available at SSRN: https://ssrn.com/abstract=1947152 or http://dx.doi.org/10.2139/ssrn.1947152