Stable matching in large markets with occupational choice.

We introduce a model of large many‐to‐one matching markets with occupational choice where each individual can choose which side of the market to belong to. We show that stable matchings exist under mild assumptions; in particular, both complementarities and externalities can be accommodated. Our model generalizes Greinecker and Kah (2021), which focuses on one‐to‐one matching and did not allow for occupational choice. Applications include the roommate problem with nonatomic participants, explaining the size and distribution of firms and wage inequality. [ABSTRACT FROM AUTHOR]