Canonical Correlation and Assortative Matching: A Remark

11 Pages Posted: 27 Oct 2012  

Arnaud Dupuy

LISER; Maastricht School of Management (MSM); IZA Institute of Labor Economics

Alfred Galichon

NYU, Department of Economics and Courant Institute

Date Written: October 27, 2012

Abstract

In the context of the Beckerian theory of marriage, when men and women match on a single-dimensional index that is the weighted sum of their respective multivariate attributes, many papers in the literature have used linear canonical correlation, and related techniques, in order to estimate these weights. We argue that this estimation technique is inconsistent and suggest some solutions.

Keywords: matching, marriage, assignment, assortative matching, canonical correlation

JEL Classification: C78, D61, C13

Suggested Citation

Dupuy, Arnaud and Galichon, Alfred, Canonical Correlation and Assortative Matching: A Remark (October 27, 2012). IZA Discussion Paper No. 6942. Available at SSRN: https://ssrn.com/abstract=2167564

Arnaud Dupuy (Contact Author)

LISER ( email )

3 avenue de la Fonte
Esch-sur-Alzette, L-4364
Luxembourg
+352585855551 (Phone)

Maastricht School of Management (MSM) ( email )

Endepolsdomein 150
Maastricht, Limburg 6201 BE
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Alfred Galichon

NYU, Department of Economics and Courant Institute ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States

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