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Tax redistribution offset? Effect of marital choices on income inequality

Author

Listed:
  • Melanie Häner-Müller

    (Institute for Swiss Economic Policy at the University of Lucerne)

  • Michele Salvi

    (Institute for Swiss Economic Policy at the University of Lucerne)

  • Christoph A. Schaltegger

    (Institute for Swiss Economic Policy at the University of Lucerne
    University of St. Gallen)

Abstract

This paper examines the relationship between marital sorting and income inequality in Switzerland using individual tax data. We find that assortative mating intensifies at the tails of the income distribution. High and low earners specifically tend to marry alike. This pattern is exacerbating household income inequality—the Gini coefficient increases by more than 10% and the top 1% share by around 5% compared to random matching. By comparison, we show that the redistributive impact of marital sorting offsets the effect induced by taxation for most of the top income quintile. However, tax dominates the opposing mating redistribution from the top 5% income share.

Suggested Citation

  • Melanie Häner-Müller & Michele Salvi & Christoph A. Schaltegger, 2025. "Tax redistribution offset? Effect of marital choices on income inequality," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 32(3), pages 805-827, June.
    • Handle: RePEc:kap:itaxpf:v:32:y:2025:i:3:d:10.1007_s10797-024-09847-8
    DOI: 10.1007/s10797-024-09847-8
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    More about this item

    Keywords

    Assortative mating; Income; Education; Inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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