The Marriage Market, Labor Supply and Education Choice
70 Pages Posted: 26 Mar 2015
There are 3 versions of this paper
The Marriage Market, Labor Supply and Education Choice
The Marriage Market, Labor Supply and Education Choice
The Marriage Market, Labor Supply and Education Choice
Date Written: March 24, 2015
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 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: Suggested Citation