We build a novel equilibrium model in which households' labor supply choices form the link between sorting on the marriage market and sorting on the labor market. We first show that in theory, the nature of home production - whether partners' hours are complements or substitutes - shapes...

We use an estimated monetary business cycle model with search and matching frictions in the labor market and nominal price and wage rigidities to study four countries (the U.S., the U.K., Sweden, and Germany) during the financial crisis and the Great Recession. We estimate the model over the...