46 Pages Posted: 30 Apr 2012
Date Written: April 26, 2012
This paper presents a tractable framework for studying frictionless matching in school, work, and marriage when individuals have heterogeneous social and cognitive skills. In the model, there are gains to specialization and team production, but specialization requires communication and coordination between team members, and individuals with more social skills communicate and coordinate at lower resource cost. The theory delivers full task specialization in the labor and education markets, but incomplete specialization in marriage. It also captures well-known matching patterns in each of these sectors, including the commonly observed many-to-one matches in firms and schools. Equilibrium is equivalent to the solution of an utilitarian social planner solving a linear programming problem.
Keywords: matching, specialization, task assignment, span of control
JEL Classification: C78, J24, J31, D50
Suggested Citation: Suggested Citation
McCann, Robert J. and Shi, Xianwen and Siow, Aloysius and Wolthoff, Ronald P., Becker Meets Ricardo: Multisector Matching with Social and Cognitive Skills (April 26, 2012). Available at SSRN: https://ssrn.com/abstract=2048554 or http://dx.doi.org/10.2139/ssrn.2048554