Document Type

Discussion Paper

Publication Date

12-1-2021

CFDP Number

2316

CFDP Pages

16

Abstract

Measuring the extent to which such assortative matching differs between two economies is challenging when the marginal distributions of the characteristic along which sorting takes place (e.g. education) also changes for either or both sexes. Drawing from the statistics literature we define simple conditions that any index has to satisfy to provide a measure of change in sorting that is not distorted by changes in the marginal distributions of the characteristic. While most indices used in the literature satisfy these conditions, one of them – the likelihood ratio of Eika et al. (2019) – does not. We attribute their empirical result of declining homogamy at the top of the distribution to the violation of our conditions.

Included in

Economics Commons

Share

COinS