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Marriage, Employment Participation and Home Production in Search Equilibrium

Lookup NU author(s): Dr Roberto Bonilla Trejos


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We model interlinked frictional marriage and labor markets, where singles consider the labor market options of potential spouses, and married couples make joint decisions on home production and labor participation. We characterize the job search-strategies of diferent couples; equal individuals have di.erent behavior depending on their spouses. When marital search is easy, people marry others with very similar productivity, and both spouses have the same behavior in the labor market. This is socially inefficient as it takes some high productivity people off the labor market. It also expands income distribution. Some empirical findings in the labor literature are supported theoretically.

Publication metadata

Author(s): Bonilla R, Trejos A

Publication type: Article

Publication status: Published

Journal: Monetaria

Year: 2015

Volume: 3

Issue: 1

Pages: 1-23

Print publication date: 30/06/2015

Acceptance date: 01/01/2015

ISSN (print): 0185-1136

Publisher: Centro de Estudios Monetarios Latinoamericanos, A.C


Notes: January-June 2015 issue, appeared late 2015.