what is the marriage market

what is the marriage market插图

A marriage market is apublic place where parents list advertisements for their children with the aim of finding a marital spouse for them. [1]People then congregate there and read the listings,often in the hope of finding a marital match. [2]

Is the marriage market conceptually useful?

The notion of the a “marriage market” is conceptually useful because like the supply-and-demand model, the marriage market generates what economists call “comparative statics”. Comparative implies a before-and-after comparison. Statics implies a focus on static outcomes (as opposed to the process through which those outcomes happened).

How does the British marriage market work?

Chiappori et al. (2018a) analyze the British marriage market using a structural model based on a three-stage game: Individuals independently invest in their HC, then they match on the marriage market, and the resulting households (singles or couples) finally consume and supply labor over several subperiods while facing various exogenous shocks.

What is the Babylonian marriage market?

The Babylonian Marriage Market depicts women being auctioned off as brides (as opposed to, for example, slaves). Long drew his inspiration for this painting from Herodotus’ Histories, more specifically, from ‘Book 1’ of that piece of writing. Towards the end of ‘Book 1’, Herodotus wrote:

What are the characteristics of the theory of marriage?

Theory predicts specific patterns of selection into exogamous marriage, of sorting in the marriage market, of intermarriage income gap, and of comparative statics with respect to the immigrant gender imbalance that are all supported by the data. 4.2.2.3. Women’s demand for higher education.

Why does forming a relationship sound like trade?

Moreover, because people compete for mates that suggests that individuals are competing with others on their side of the market to make those trades ( like buyers raise bids against other buyers or sellers lower asks against other sellers).

What is voluntary nature of marriage?

814) The voluntary nature of marriage means marriage happens when there are mutual gains. So forming that relationship sounds a lot like trade.

Is marriage voluntary?

The first is that, since marriage is practically always voluntary … the theory of preferences can be readily applied, and persons marrying can be assumed to expect to raise their utility level above what it would be were they to remain single.

Who said "two simple principles form the heart of the analysis"?

The idea of a “marriage market”. For those not familiar with the idea of a “marriage market”, consider the following quote from Gary Becker from his paper “A Theory of Marriage, Part 1” (emphasis own), “Two simple principles form the heart of the analysis.

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Why is marriage market sorting important?

So, it turns out that marriage market sorting is very important for income inequality and social mobility as well as human capital accumulation in the future . 2. Human capital refers to knowledge and skills obtained through education, experience and training.

What happens if you have a low income and a high income?

Take, for example, someone who has a very low income and marries someone with a very high income. The [low-income] person will most likely drop out of the labor force—or they can drop out of the labor force—beca use they have insurance at home because their spouse earns a very high income. The opposite example is someone who marries someone with a similar income. If both of them don’t have very high incomes, then most likely both will participate in the labor force.

How to see if the search in marriage markets is efficient?

From the theoretical perspective, to see if the search in marriage markets is efficient, we compare the actions that an individual would take with those that a social planner would take. So basically if you had someone telling you exactly what is the best thing that you could do to find a partner versus those actions that you would take yourself.

What is human capital?

Human capital refers to knowledge and skills obtained through education, experience and training.

How does education affect social mobility?

As a result, it’s going to affect social mobility because those people who have accumulated more human capital through education are going to potentially earn a higher income.

What is search matching?

Restrepo-Echavarria: Search and matching is literally when you search for something and you find that something. It can be applied to many different markets.

What was the Babylonian marriage market?

The Babylonian Marriage Market: An Auction of Women in the Ancient World. In the 5 th century BC, Greek Historian Herodotus wrote about the customs and traditions he witnessed while in Babylon. One of the more controversial customs he reports on is the Babylonian marriage market in which young women were gathered up and an “auctioneer would get …

What is Wu Mingren’s major?

Wu Mingren (‘Dhwty’) has a Bachelor of Arts in Ancient History and Archaeology. Although his primary interest is in the ancient civilizations of the Near East, he is also interested in other geographical regions, as well as other time periods…. Read More

What did the ancient Babylonians use to track Jupiter?

Ancient Babylonian use of the Pythagorean Theorem and its Three Dimensions. Clay Tablet Reveals Ancient Babylonians Used Calculus to Track Jupiter 1,500 Years before Europeans. This piece of painting may be interpreted in several ways.

How long did it take to complete the painting of the Amorites?

The painting took Long two years to complete and was unveiled at the Royal Academy summer exhibition in 1875. In the following year, it was sold for a sum of 6000 guineas, which, at that time, was the largest amount of money paid for a piece of work whose artist was still alive. The Fierce Amorites and the First King of the Babylonian Empire.

What did the auctioneers do to the young women?

A crowd of men would form a circle around them there. An auctioneer would get each of the women to stand up one by one, and he would put her up for sale.

Why did Long consult ancient artifacts?

Apart from Herodotus’ writings, Long also consulted ancient artifacts in order to paint his masterpiece. During that time, archaeological expeditions were being carried out in Mesopotamia, and artifacts from that region were being brought back to London. As the painter was able to gain access to the Assyrian collections of the British Museum, he could incorporate a huge amount of detail from those objects into his artwork. This allowed Long to produce something that was closer to what the real Babylon would have looked like, as compared to his predecessors.

Why were maidens brought to auction?

And on regular occasions maidens were brought in large numbers and sold at auction in order that the wealthy princes and libertines of surrounding nations might be drawn to their unscrupulous market. Fathers and brothers with their daughters and sisters stood ready to barter for money the pleasures due only to love.

Why is the family important?

The importance of the family as a social group cannot be overestimated.2 Its crucial role in human evolution has been abundantly documented. Even within contemporary developed societies, its role remains central in many respects. Demographic issues such as fertility, aging, or immigration are at the core of many major challenges modern economies face. Investment in human capital (HC) has been known for a long time to be a key component of economic growth. HC accumulation obviously starts within the family; moreover, an abundant literature on child development has demonstrated that the first few years of life have a long-lasting influence on the whole process. A large fraction of the increase in inequality over the recent decades is likely to have been generated by demographic phenomena—not only because assortative matching in marriage tends to mechanically amplify inequality among individuals, but also, and in a much deeper way, because parents endowed with a larger stock of HC appear to invest more in their children, generating even more inequality of opportunity for the next generation. Finally, a common feature of many non-unitary models—starting with the now dominant collective approach—is the emphasis put on power relationships within the household. The idea that intra-household allocation should be analyzed as an endogenous phenomenon largely reflecting conditions of the marriage market dates back to Becker (1973). The fact that, more than four decades later, modern analysis should heavily rely on these insights is a clear tribute to Becker’s legacy.

What is search model in marriage market?

The econometrics of search models applied to marriage markets largely reflects two background influences , namely macroeconomics and labor. The macro approach does not formally describe a stochastic structure for the model under consideration. Instead, it constructs a theoretical model that is then simulated using specific values for the relevant parameters. In practice, some parameter values (e.g., discount rate, life expectancy, individual preferences, etc.) are picked up from existing studies. The remaining parameters (if any) may then be calibrated to best approximate a set of data targets. Technically, the calibrated parameters minimize the distance between the targets predicted by the model and the actual ones, although the definition of the corresponding metrics does not typically refer to the stochastic properties of the series under consideration. 17

What is the matching table for agents?

Specifically, agents are assumed to belong to a finite (and actually small) set of categories; the market is fully summarized by the matching table indicating, for each gender and each category (e.g., level of education), the proportion of individuals married to a spouse in each category plus the proportion of singles.

What is equilibrium condition?

A matching is said to be stable if (a) no matched individual would prefer being single, and (b) no pair of individuals would both prefer being matched together (for a well-chosen distribution of the surplus) over their current situation. The second condition is often referred to as divorce at will: Whenever it is violated, the corresponding individuals will each divorce their current spouse (or abandon their current singlehood) to form a new union, implying that the initial matching was not stable.

What does u(x) mean in equation 2?

Here, u(x) [resp. v(y)] denotes the utility reached by xfor that matching, and Equation 2simply states that matched people share the resulting surplus. Singles’ utility is normalized to zero, implying that S(x, ?Y) = S(?X, y) = 0 for all x, y.

What is the property of matching models under TU?

A crucial property of matching models under TU is their intrinsic relationship with a class of linear maximization problems called “optimal transportation.” 12 Consider the following question: Find a measure h on X × Y, the marginals of which are F and G, respectively, that maximizes the integral

What is the NTU case?

An abundant literature considers the so-called non-transferable utility (NTU) case, where transfers are not possible: There is simply no technology enabling agents to decrease their utility to the benefit of a potential partner.5This framework has been applied to a host of important issues, from the allocation of residents to hospitals (Roth 1984) to kidney exchange (Roth et al. 2004, 2005) or the allocation of students to public schools (Abdulkadiro?lu & Sönmez 2003). In the case of marriage, however, the NTU case appears to be much less relevant; it is hard to imagine situations where any move along the Pareto frontier, whereby a spouse’s welfare is decreased to the benefit of the partner, is simply ruled out. In this review, therefore, I concentrate on matching models involving transfers.6

What is the Ciscato model?

Ciscato (2019) estimates a related model based on US data. In his framework, spouses are able to insure each other against wage shocks. However, in the absence of full commitment, both wage and love shocks can trigger divorce; then, agents are free to look for a new spouse, but their marriage prospects deteriorate as they get older. The model, estimated for two separate periods, the 1970s and the 2000s, replicates the cross-sectional marriage patterns (who gets married and with whom), the longitudinal marriage patterns (the odds of getting married and divorced at various stages of the life cycle), and the female labor supply patterns. Up to a third of the decline in the share of married adults between the 1970s and the 2000s appears to be due to changes in the wage distribution.

What is the simplest approach to multidimensional models?

The simplest approach to multidimensional models relies on an index assumption, according to which an individual’s multiple characteristics matter for the marriage market only through some one-dimensional index , as in Equation 9 above. Chiappori et al. (2012, 2020) show that this assumption, clearly restrictive, is however testable. Specifically, they consider a SEV model 22 in which ( a) the deterministic component is quadratic and satisfies Equation 9, and ( b) normally distributed stochastic terms enter through the scalar product with observable characteristics. They derive testable restrictions over the coefficients of the regressions of male-to-female characteristics (and vice versa); moreover, should these conditions be satisfied, the indices could be recovered (obviously up to an increasing transform). They apply this methodology to data from the Panel Study of Income Dynamics (see https://psidonline.isr.umich.edu/ ), with socioeconomic status being proxied by income or education and physical attractiveness being proxied by an individual’s body mass index (BMI). The restrictions are not rejected; moreover, the estimated indices are linear.

How does a postgraduate degree affect women?

The key insight is clear: Investing in a postgraduate degree by delaying marriage and childbearing has a higher cost for women, whose biological clock runs much faster. In her model, men differ by one characteristic (which can be interpreted as income, education, or social status), whereas women differ by two traits: innate ability and fertility. Women’s innate ability can be boosted by access to graduate education, resulting in a larger stock of HC (and higher income) but lower fertility (which is modeled as discrete). In particular, if returns to HC are smaller and fertility loss is costly, stable matching may exhibit non-monotonic patterns, with the most able women investing in higher education but being matched to husbands of intermediate “quality,” as top-income men prefer less skilled but more fertile women. When returns to HC increase and/or desired fertility is reduced, the stable matching switches to assortative matching on HC. Low argues that the evolution of the US marriage market over the last decades can be interpreted as a shift of this type, a claim well supported by the data.

What is search model in marriage market?

The econometrics of search models applied to marriage markets largely reflects two background influences , namely macroeconomics and labor. The macro approach does not formally describe a stochastic structure for the model under consideration. Instead, it constructs a theoretical model that is then simulated using specific values for the relevant parameters. In practice, some parameter values (e.g., discount rate, life expectancy, individual preferences, etc.) are picked up from existing studies. The remaining parameters (if any) may then be calibrated to best approximate a set of data targets. Technically, the calibrated parameters minimize the distance between the targets predicted by the model and the actual ones, although the definition of the corresponding metrics does not typically refer to the stochastic properties of the series under consideration. 17

How many families of alternative models are there?

Two main families of alternative models can be found in the literature.

What is the property of matching models under TU?

A crucial property of matching models under TU is their intrinsic relationship with a class of linear maximization problems called “optimal transportation.” 12 Consider the following question: Find a measure h on X × Y, the marginals of which are F and G, respectively, that maximizes the integral

When was the marriage market first proposed?

Although the economic analysis of the marriage market was initiated some 50 years ago by Becker’s seminal 1973 contribution, it has attracted renewed attention over the last two decades, accompanying a reconsideration of microeconomic models of household behavior that started in the late 1980s. The notion that the intra-household allocation of resources should be influenced by the situation of the market for marriage dates back to Becker (at least), but it was hard to reconcile with a unitary representation of the family as maximizing a single, exogenously given utility. By explicitly recognizing the importance of members’ respective power in the household decision process, and more importantly, by providing tools for both formalizing this intuition and identifying the corresponding structure from observed behavior, new approaches—and especially the collective model—have provided the missing link. This has opened the way for a joint formalization of the interactions between family behavior and the market for (re-)marriage. Moreover, the (static) efficiency assumption that lies at the heart of the collective approach is fully compatible with the frameworks typically used by market models (which commonly refer to bargaining and/or equilibrium considerations). All in all, the landscape, almost half a century after Becker’s work, is one of general unification of the field around some core principles, as well as a spectacular development of the empirical tools needed to take these concepts to data in a highly rigorous way.

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