Marriage, Labor Supply, and Home Production: A Longitudinal Microeconomic Analysis of Marriage, Intra-Household Bargaining and Time Use Using the BHPS, 1991-2008
CRREP Working Paper 2016-03
53 Pages Posted: 14 Jan 2016 Last revised: 29 Mar 2018
Date Written: January 12, 2016
Abstract
We extend the search-matching model of the marriage market of Shimer and Smith (2000) to allow for labor supply, home production, match-specific shocks and endogenous divorce. We study nonparametric identification using panel data on marital status, education, family values, wages, and market and non market hours, and we develop a semiparametric estimator. We estimate how much sorting results from time use specialization or homophilic preferences. We estimate how equilibrium marriage formation affects the wage elasticities of market and non market hours. We estimate individuals’ willingness to pay for marriage and quantify the redistributive effect of intra-household resource sharing.
Keywords: Search-matching, sorting, assortative matching, collective labor supply, structural estimation
JEL Classification: C78, D83, J12, J22
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