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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.
Authors
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Deputy Research Director
Monica is a Deputy Research Director and Professor of Economics at the University of Bristol, with an interest in Labour, Family and Public Economics.
Columbia University
Working Paper details
- DOI
- 10.1920/wp.ifs.2016.1609
- Publisher
- Institute for Fiscal Studies
Suggested citation
P, Chiappori and M, Costa Dias and C, Meghir. (2016). The marriage market, labour supply and education choice. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/marriage-market-labour-supply-and-education-choice (accessed: 29 March 2024).
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