Canonical Correlation and Assortative Matching: A Remark
11 Pages Posted: 27 Oct 2012
Date Written: October 27, 2012
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: Suggested Citation