Type | Working Paper |
Title | Testing Becker’s theory of positive assortative matching |
Author(s) | |
Publication (Day/Month/Year) | 2009 |
URL | http://homes.chass.utoronto.ca/~siow/papers/testing becker.pdf |
Abstract | In a static frictionless transferable utilities bilateral matching market with systematic and idiosyncratic payo§s, supermodularity of the match output function implies a strong form of positive assortative matching: The equilibrium matching distribution has all positive local log odd ratios or totally positive of order 2 (T P2). A particular form of a preference for own type implies supermodularity of the match output function. Other forms imply non-T P2 behavior. Local odds ratios are not informative on whether a bilateral matching market equilibrates with or without transfers. Using white married couples in their thirties from the US 2000 census, spousal educational matching obeyed T P2 except for less than 0.2% of marriages with extreme spousal educational disparities. Using the T P2 order, there were more positive assortative matching by couples living in SMSAís than those who do not; but not more positive assortative matching in 2000 than in 1970. There were increases in speciÖc local log odds over that period |
» | United States - Census of Population and Housing 2000 - IPUMS Subset |