Arbeitspapier
A Simple Solution to the Problem of Independence of Irrelevant Alternatives in Choo and Siow Marriage Market Model
This paper proposes a simple solution to the independence of irrelevant alternatives (IIA) problem in Choo and Siow (2006) model, overcoming what is probably the main limitation of this approach. The solution consists of assuming match-specific rather than choice-specific random preferences. The original marriage matching function gets modified by an adjustment factor that improves its empirical properties. Using the American Community Survey, I show that the new approach yields significantly different results affecting the qualitative conclusions of the analysis. The proposed solution to the IIA problem applies to other settings in which the relative "supply" of choices is observable.
- Language
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Englisch
- Bibliographic citation
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Series: GLO Discussion Paper ; No. 387
- Classification
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Wirtschaft
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Economics of Gender; Non-labor Discrimination
Demographic Economics: General
- Subject
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Independence of irrelevant alternatives
marriage market
transferable utility
- Event
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Geistige Schöpfung
- (who)
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Gutierrez, Federico H.
- Event
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Veröffentlichung
- (who)
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Global Labor Organization (GLO)
- (where)
-
Essen
- (when)
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2019
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gutierrez, Federico H.
- Global Labor Organization (GLO)
Time of origin
- 2019
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