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Marital Sorting and Inequality: How Educational Categorization Matters

Author

Listed:
  • Almar, Frederik

    (Aarhus University)

  • Friedrich, Benjamin

    (Northwestern University)

  • Reynoso, Ana

    (University of Michigan)

  • Schulz, Bastian

    (Aarhus University)

  • Vejlin, Rune Majlund

    (Aarhus University)

Abstract

This paper revisits the link between education-based marriage market sorting and income inequality. Leveraging Danish administrative data, we develop a novel categorization of marriage market types based on the starting wages and wage growth trajectories associated with educational programs: ambition types. We find a substantial increase in sorting by educational ambition over time, which explains more than 40% of increasing inequality since 1980. In contrast, sorting trends are flat with the commonly used level of education. Hence, the mapping between education and marriage-market types matters crucially for conclusions about the role of marital sorting in rising income inequality.

Suggested Citation

  • Almar, Frederik & Friedrich, Benjamin & Reynoso, Ana & Schulz, Bastian & Vejlin, Rune Majlund, 2023. "Marital Sorting and Inequality: How Educational Categorization Matters," IZA Discussion Papers 15912, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15912
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    References listed on IDEAS

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    More about this item

    Keywords

    marital sorting; inequality; education;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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