The Marriage Market, Labor Supply and Education Choice

89 Pages Posted: 20 Jul 2016

See all articles by Pierre-Andre Chiappori

Pierre-Andre Chiappori

Columbia University - Graduate School of Arts and Sciences, Department of Economics

Monica Costa Dias

School of Economics, University of Bristol; Institute for Fiscal Studies (IFS)

Costas Meghir

Yale University; Yale University - Cowles Foundation; Institute for Fiscal Studies (IFS); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: July 18, 2016

Abstract

We develop an equilibrium lifecycle model of education, marriage and labor supply and consumption in a transferable utility context. Individuals start by choosing their investments in education anticipating returns in the marriage market and the labor market. They then match based on the economic value of marriage and on preferences. Equilibrium in the marriage market determines intrahousehold allocation of resources. Following marriage households (married or single) save, supply labor and consume private and public commodities under uncertainty. Marriage thus has the dual role of providing public goods and offering risk sharing. The model is estimated using the British HPS.

Keywords: Marriage market, Human capital, Labor supply, Life cycle models, Intrahousehold allocations, Collective model, Education choice, Returns to education

JEL Classification: J12, J16, J22, J24, H31, I24, I26

Suggested Citation

Chiappori, Pierre-Andre and Costa Dias, Monica and Meghir, Costas, The Marriage Market, Labor Supply and Education Choice (July 18, 2016). Cowles Foundation Discussion Paper No. 1994R, Available at SSRN: https://ssrn.com/abstract=2811818 or http://dx.doi.org/10.2139/ssrn.2811818

Pierre-Andre Chiappori

Columbia University - Graduate School of Arts and Sciences, Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

Monica Costa Dias

School of Economics, University of Bristol ( email )

Bristol
United Kingdom

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Costas Meghir (Contact Author)

Yale University ( email )

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New Haven, CT CT 06511
United States
+12034323558 (Phone)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

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