as in Melitz (2003). This increases …firms´ incentives to hire or …re workers as idiosyncratic productivity shocks occur, thereby increasing job turnover and, because of the search frictions, spreading the wage distribution. Preliminary simulations at plausible parameter values suggest that...

Societies socialize children about sex. This is done in the presence of peer-group effects, which may encourage undesirable behavior. Parents want the best for their children. Still, they weigh the marginal gains from socializing their children against its costs. Churches and states may...

Has there been an increase in positive assortative mating? Does assortative mating contribute to household income inequality? Data from the United States Census Bureau suggests there has been a rise in assortative mating. Additionally, assortative mating affects household income inequality. In...

We analyze the role of optimal income taxation across different local labor markets. Should labor in large cities be taxed differently than in small cities? We find that a planner who needs to raise revenue and is constrained by free mobility of labor across cities does not choose equal taxes...

Marriage has declined since 1960, with the drop being bigger for non-college educated individuals versus college educated ones. Divorce has increased, more so for the non-college educated. Additionally, positive assortative mating has risen. Income inequality among households has also widened. A...

Marriage has declined since 1960, with the drop being bigger for non-college educated individuals versus college educated ones. Divorce has increased, more so for the non-college educated. Additionally, positive assortative mating has risen. Income inequality among households has also widened. A...

According to <link rid="b26">Pareto (1896)</link>, the distribution of income depends on "the nature of the people comprising a society, on the organization of the latter, and, also, in part, on chance." In the model developed here the "nature of the people" is captured by attitudes toward marriage, divorce,...

This paper describes an overlapping-generations model of marriage, fertility, and income distribution.

Labor market decisions are not taken in isolation when individuals are engaged in stable relationships. Our analysis is designed to determine the joint equilibrium distribution of schooling levels, labor market outcomes, and marriage market statuses. We assume individuals begin adult life by...