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...

Using a two-stage decomposition technique, this paper analyzes the role of occupational segregation in explaining the probability of women vis-'a-vis men of finding high-paying jobs over the life-cycle. Jobs are classified as highly-remunerated if their compensation exceeds a threshold, which is...

Family structure is usually believed to affect children's human capital. Is it possible that causality goes in the opposite direction? This paper shows that the behavior of family structure variables over the life cycle dramatically changes when women have babies in their forties. These data...

Family structure is usually believed to affect children's human capital. Is it possible that causality goes in the opposite direction? This paper shows that the behavior of family structure variables over the life cycle dramatically changes when women have babies in their forties. These data...

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...

This paper presents a new model of the household that is able to explain a variety of consumption patterns that existing models cannot describe, most notably, those associated with the Deaton and Paxson (1998) paradox. The most distinctive feature of this model is the presence of common-pool...