Should More Risk-Averse Agents Exert More Effort?
In: The Geneva papers on risk and insurance theory, Band 24, Heft 1, S. 19-28
ISSN: 1573-6954
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In: The Geneva papers on risk and insurance theory, Band 24, Heft 1, S. 19-28
ISSN: 1573-6954
In: Journal of human capital: JHC, Band 13, Heft 2, S. 236-259
ISSN: 1932-8664
In: American economic review, Band 107, Heft 8, S. 2109-2167
ISSN: 1944-7981
We construct a model of household decision-making in which agents consume a private and a public good, interpreted as children's welfare. Children's utility depends on their human capital, which depends on the time their parents spend with them and on the parents' human capital. We first show that as returns to human capital increase, couples at the top of the income distribution should spend more time with their children. This in turn should reinforce assortative matching, in a sense that we precisely define. We then embed the model into a transferable utility matching framework with random preferences, à la Choo and Siow (2006), which we estimate using US marriage data for individuals born between 1943 and 1972. We find that the preference for partners of the same education has significantly increased for white individuals, particularly for the highly educated. We find no evidence of such an increase for black individuals. Moreover, in line with theoretical predictions, we find that the "marital college-plus premium" has increased for women but not for men. (JEL D12, J12, J13, J15, J24)
In: American economic review, Band 99, Heft 2, S. 356-362
ISSN: 1944-7981
In: The Rand journal of economics, Band 37, Heft 4, S. 783-798
ISSN: 1756-2171