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Stable matching in large markets with occupational choice
Journal article   Open access   Peer reviewed

Stable matching in large markets with occupational choice

Theoretical economics : TE, Vol.19(3), pp.1261-1304
07/2024

Abstract

Business & Economics Economics Social Sciences
We introduce a model of large many-to-one matching markets with occupational choice where each individual can choose which side of the market to belong to. We show that stable matchings exist under mild assumptions; in particular, both complementarities and externalities can be accommodated. Our model generalizes Greinecker & Kah (2021), which focuses on one-to-one matching and did not allow for occupational choice. Applications include the roommate problem with non-atomic participants, explaining the size and distribution of firms and wage inequality. * We wish to thank Michael Greinecker, Ravi Jagadeesan, Fuhito Kojima, Karolina Vocke, Rakesh Vohra, three anonymous referees and seminar participants at the University
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Author's Accepted Manuscript Open Access CC BY-NC V4.0
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https://doi.org/10.3982/TE5915View
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