A Dynamic Generalization of Becker's Assortative Matching Result

20 Pages Posted: 10 Jan 2012

See all articles by Axel Anderson

Axel Anderson

Georgetown University - Department of Economics

Date Written: August 4, 2011

Abstract

This paper considers a dynamic partnership model in which agents' future productivity depends in part on their current match. Efficient rankings over human capital distributions are characterized in several common stochastic orders. These rankings are used to characterize the returns to human capital for individual agents in the associated market equilibrium. Assortative matching theorems are developed using the planner's characterization results. While positive assortative matching is efficient given sufficient complementarity in static production and dynamic transitions, curvature assumptions on static production are necessary for a robust sorting theory in this dynamic environment.

Keywords: Sorting, Assortative, Matching, Human Capital, Inequality, Dynamic Partnership

JEL Classification: C61, C78, D20, D51

Suggested Citation

Anderson, Axel, A Dynamic Generalization of Becker's Assortative Matching Result (August 4, 2011). Available at SSRN: https://ssrn.com/abstract=1982734 or http://dx.doi.org/10.2139/ssrn.1982734

Axel Anderson (Contact Author)

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States

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