MARRIAGE AND CLASS

Here we consider a matching model where agents are heterogeneous and u tilities nontransferable. We utilize this framework to study how equil ibrium sorting takes place in marriage markets. We impose conditions t hat guarantee the existence of a steady state equilibrium and then cha racterize it. Several examples are developed to illustrate the richnes s of equilibria. The model reveals an interesting sorting externality that can support multiple steady state equilibria, even with constant returns to matching.