Individuals’ choice of an employer, a spouse, or a neighborhood to live in can be described in terms of matching. Individuals aim at choosing the best possible match given their preferences. The course will explore the determinants of the efficiency of matching from the individuals’ point of view: search costs, informational barriers, etc. It will then address the social and economic consequences of individuals’ behavior. Thus, in the marriage market, matching tends to perpetuate human capital inequalities across generations, while in the housing market, matching often leads to racial segregation. Understanding matching mechanisms can thus help policymakers shape inequality-reducing policies in areas such as education or housing.
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