Before revision:  I propose an inference procedure combining discrete choice methods with simulation . Counterfactual analysis using Canadian data shows that changes in matching frictions can lead to economically significant equilibrium changes in both inequality and the probability of investing in higher education.
After revision:  Although the observed matching exhibits strong cross-sectional dependence due to the matching process, we propose an asymptotically valid inference procedure that combines discrete choice methods with simulation . Counterfactual analysis using Canadian data shows that changes in matching frictions can lead to economically significant equilibrium changes in both inequality and the probability of investing in higher education.