Instituto de Economia
Facultad de Ciencias Economicas y Administrativas
Pontificia Universidad Catolica de Chile
Avda Vicuna Mackenna 4860
Institutional Affiliations: Pontificia Universidad Catolica de Chile and IZA
NBER Working Papers and Publications
|May 2020||Collateralized Marriage|
with Corinne Low: w27210
We develop a model of the household where investments in public goods can be made at the cost of future earnings. If couples cannot commit ex ante to a sufficiently equal post-divorce allocation, specialization and public goods’ creation will be sub-optimal. However, investing in joint assets, which the marriage contract specifies are to be divided in the case of divorce, can reduce this problem by offering insurance to the lower earning partner. Our model demonstrates that access to this “collateralized” version of the contract will lead to more household specialization, more public goods, and a higher value of marriage. Empirically, we show that quasi-exogenous variation in access to collateralization leads to more specialization, and that wealth has become a more important determinant o...
|July 2015||People and Machines: A Look at the Evolving Relationship Between Capital and Skill In Manufacturing 1860-1930 Using Immigration Shocks|
with José Tessada, Ethan Lewis: w21435
This paper estimates the elasticity of substitution between capital and skill using variation across U.S. counties in immigration-induced skill mix changes between 1860 and 1930. We find that capital began as a q-complement for skilled and unskilled workers, and then dramatically increased its relative complementary with skilled workers around 1890. Simulations of a parametric production function calibrated to our estimates imply the level of capital-skill complementarity after 1890 likely allowed the U.S. economy to absorb the large wave of less-skilled immigration with a modest decline in less-skilled relative wages. This would not have been possible under the older production technology.
Published: Jeanne Lafortune & Ethan Lewis & José Tessada, 2019. "People and Machines: A Look at the Evolving Relationship between Capital and Skill in Manufacturing, 1860–1930, Using Immigration Shocks," The Review of Economics and Statistics, vol 101(1), pages 30-43. citation courtesy of
|May 2009||Marry for What: Caste and Mate Selection in Modern India|
with Abhijit Banerjee, Esther Duflo, Maitreesh Ghatak: w14958
This paper studies the role played by caste, education and other social and economic attributes in arranged marriages among middle-class Indians. We use a unique data set on individuals who placed matrimonial advertisements in a major newspaper, the responses they received, how they ranked them, and the eventual matches. We estimate the preferences for caste, education, beauty, and other attributes. We then compute a set of stable matches, which we compare to the actual matches that we observe in the data. We find the stable matches to be quite similar to the actual matches, suggesting a relatively frictionless marriage market. One of our key empirical findings is that there is a very strong preference for within-caste marriage. However, because both sides of the market share this preferen...
Published: Abhijit Banerjee & Esther Duflo & Maitreesh Ghatak & Jeanne Lafortune, 2013. "Marry for What? Caste and Mate Selection in Modern India," American Economic Journal: Microeconomics, American Economic Association, vol. 5(2), pages 33-72, May. citation courtesy of