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Title: Identification of Counterfactuals in Marriage Matching Models

Citation Type: Miscellaneous

Publication Year: 2016

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Abstract: Choo and Siow (2006b) (CS here after) proposed an empirical implementation of the Becker-Shapley-Shubik transferable utility model of marriage matching. When com- puting counterfactual experiments, CS and its generalization have taken the standard approach of first estimating the structural parameters before computing the counter- factual experiments. In this paper, we show that for the CS and some related models, certain types of counterfactual experiments are identified without estimating the struc- tural parameters. Our new approach of identifying the counterfactuals reformulates the CS style model into a system of equations with the ratio of counterfactual to ob- served equilibria as unknowns. This system of equations are free from the structural marital gain parameters. These models in equilibrium all generate marriage matching functions with two properties - the structural parameters enter multiplicatively and the functions are homogenous of degree k. We formalize our model and show existence and uniqueness of equilibrium for our approach. We illustrate our framework by analyzing the impact of the elimination of the Social Security Student Benefit Program in 1982 on college attendance and the marriage market.

Url: http://www.econ.cuhk.edu.hk/econ/images/content/news_event/seminars/2017-2018_1stTerm/Eugene.pdf

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Authors: Chen, Liang; Choo, Eugene

Publisher: Wuhan University

Data Collections: IPUMS CPS

Topics: Fertility and Mortality

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