Assortative Matching and the Education Gap

Ximena Pena
2006 Social Science Research Network  
This paper attempts to explain the decrease and reversal of the education gap between males and females. Given a continuum of agents, the education decisions are modelled as an assignment game with endogenous types. In the ...rst stage agents choose their education level and in the second they participate in the labor and marriage markets. Competition among potential matches ensures that the e¢ cient education levels can always be sustained in equilibrium, but there may be ine¢ cient
more » ... e¢ cient equilibria. Combining asymmetries intrinsic to the modelled markets the model reproduces the observed education gap.
doi:10.2139/ssrn.953299 fatcat:zz3syzoubjb2ldss66idr373aq