The Effects of Assortative Mating on Income Inequality: A Decompositional Analysis
AbstractUsing the Australian Bureau of Statistics’ Survey of Income and Household Costs, this paper explores the effect of changing assortative mating patterns on income inequality. Evidence from theoretical and mathematically calibrated models suggest that assortative mating has distributional implications for measurable traits, which include income. Using a semi-parametric conditional weighted kernel density estimation framework we analyse the effect of assortative mating on the distribution of income in Australia. In controlling for labour force participation, family characteristics, education and other demographic variables, we find some evidence to suggest that assortative mating has had an influence on the increase in income inequality in the 17 years to 2003. The results are robust to several changes in specification.
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Bibliographic InfoPaper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 538.
Date of creation: Nov 2006
Date of revision:
inequality; assortative mating/matching; sorting;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-25 (All new papers)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
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by chris dillow in Stumbling and Mumbling on 2007-05-20 12:23:35
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- Clark, William A.V. & van Ham, Maarten & Coulter, Rory, 2011. "Socio-Spatial Mobility in British Society," IZA Discussion Papers 5861, Institute for the Study of Labor (IZA).
- Markus M. Grabka & Ursina Kuhn, 2012. "The Evolution of Income Inequality in Germany and Switzerland since the Turn of the Millennium," SOEPpapers on Multidisciplinary Panel Data Research 464, DIW Berlin, The German Socio-Economic Panel (SOEP).
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