Past research: Professor Salanié’s research combines contributions in microeconomic theory (dynamic contracting), in applied microeconomics (insurance, labor, population, and decision-making under risk), and in econometric theory (simulation-based inference).
In past research with Guy Laroque, Salanié used a microsimulation model of the French tax-benefit system in order to estimate the disincentive effects of some means- and employment-tested benefits on labor supply. They later extended their approach to model joint labor supply and fertility decisions. Their results show that financial incentives increase birth rates for the first and the third child in a family. These effects are not very large; they come at a lower cost when delivered through unconditional child credits.
Present/Future research: Salanié is currently working with Alfred Galichon and with Pierre-André Chiappori and Yoram Weiss on matching models of the marriage market. They derive assumptions under which the data identify the underlying preference parameters. Chiappori, Salanié and Weiss apply this approach in order to evaluate how the returns to education on the marriage market have changed over time. Galichon and Salanié have developed a general, flexible empirical strategy that they plan to use to explore the determinants of marriage and partner choice in various countries.
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