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Dynamic Matching: From Theory to Public Policy

Objective

Matching theory has transformed how societies allocate scarce resources, with successful applications in school choice, medical residencies, and kidney exchange. Yet most existing approaches treat allocation as a one-off event, while many of the most important public-sector challenges unfold dynamically, where today’s assignment shapes tomorrow’s opportunities. A prime example is the assignment of civil servants, a high-stakes process involving, in most developed countries, millions of positions each year assigned through a centralized mechanism.

This project develops the first comprehensive framework for dynamic matching, combining theoretical advances, methodological tools, and empirical applications. On the theory side, it will build new models to capture the repeated nature of assignments and develop methods to simplify complex dynamic design problems into more tractable static optimization. Building on this foundation, it will analyze how dynamic incentives—such as promising better future positions in exchange for accepting less desirable posts today—can reduce inequalities, and whether these incentives complement or substitute traditional salary instruments. On the empirical side, the project will draw on rich French administrative data on teacher assignments, complemented by a nationwide survey, to estimate teachers’ preferences and to evaluate alternative policy designs. Counterfactual simulations will then compare the effectiveness of monetary incentives with non-monetary dynamic incentives. The project will also develop standardized protocols enabling other administrations to replicate the analyses securely.

The ultimate goal is to deliver a solid theoretical foundation together with an empirical toolbox that provides practical instruments to help policymakers design fairer and more efficient assignment systems, with direct implications for critical areas of public service worldwide.

Fields of science (EuroSciVoc)

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Programme(s)

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Topic(s)

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Funding Scheme

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2025-ADG

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Host institution

CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE CNRS
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 2 495 212,00
Address
RUE MICHEL ANGE 3
75794 Paris
France

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Region
Ile-de-France Ile-de-France Paris
Activity type
Research Organisations
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

No data

Beneficiaries (1)