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## Overview
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Optimal transport theory is studies how one (marginal) probabilty measure can be related to another (marginal) probability measure in an ideal way.
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The output of such a theory is a **coupling** of the two probability measures, i.e., a joint probabilty
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measure having those two marginal probability measures.
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This lecture describes how Job Boerma, Aleh Tsyvinski, Ruodo Wang,
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and Zhenyuan Zhang {cite}`boerma2023composite` used optimal transport theory to formulate and solve an equilibrium of a model in which wages and allocations of workers across jobs adjust to match measures of different types with measures of different types of occupations.
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That means that it possible that equilibrium there is neither **positive assortive** nor **negative assorting** matching, an outcome that {cite}`boerma2023composite` call **composite assortive** matching.
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In such an equilibrium with composite matching, for example, identical workers can sort into different occupations, some positively and some negatively.
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For example, in an equilibrium with composite matching, identical **workers** can sort into different **occupations**, some positively and some negatively.
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{cite}`boerma2023composite`
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show how this can generate distinct distributions of labor earnings within and across occupations.
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This lecture describes the {cite}`boerma2023composite` model and presents Python code for computing equilibria.
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It then applies the code to their model of labor markets.
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The lecture applies the code to the {cite}`boerma2023composite` model of labor markets.
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As with our earlier lecture on optimal transport (https://python.quantecon.org/opt_transport.html), a key tool will be **linear programming**.
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As with an earlier QuantEcon lecture on optimal transport (https://python.quantecon.org/opt_transport.html), a key tool will be **linear programming**.
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