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Marital Patterns and Income Inequality

Author

Listed:
  • Dupuy, Arnaud

    (University of Luxembourg)

  • Weber, Simon

    (KU Leuven)

Abstract

We investigate the role of marital patterns in explaining rising income inequality using a structural marriage matching model with unobserved heterogeneity. This allows us to consider both the extensive and intensive margins of the marriage market, i.e. who remains single and who marries whom. Using US data from 1962 to 2017, we show that marital patterns can explain about 1/3 of the rise in income inequality. The intensive margin (educational assortative mating) has only played a minor role (5%), the extensive margin being the main driver of the contribution of marital patterns (95%).

Suggested Citation

  • Dupuy, Arnaud & Weber, Simon, 2018. "Marital Patterns and Income Inequality," IZA Discussion Papers 11572, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11572
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    Citations

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    Cited by:

    1. Shoshana Grossbard & Lucia Mangiavacchi & William Nilsson & Luca Piccoli, 2019. "Spouses' Income Association and Inequality: A Non-Linear Perspective," Working Papers 2019-076, Human Capital and Economic Opportunity Working Group.
    2. Anna NASZODI & Francisco Mendonca, 2024. "Changing educational homogamy: shifting preferences or evolving educational distribution?," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(2), pages 256-284, June.
    3. Geghetsik Afunts & Stepan Jurajda, 2022. "Who Divorces Whom: Unilateral Divorce Legislation and the Educational Structure of Marriage," CERGE-EI Working Papers wp740, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Edoardo Ciscato & Simon Weber, 2020. "The role of evolving marital preferences in growing income inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 307-347, January.
    5. Dupuy, Arnaud & Kennes, John & Lyng, Ran Sun, 2021. "The Market for CEOs: Building Legacy and Feeling Empowered Matter," IZA Discussion Papers 14803, Institute of Labor Economics (IZA).
    6. Anna Naszodi, 2021. "Decomposition scheme matters more than you may think," Papers 2104.09141, arXiv.org.

    More about this item

    Keywords

    marriage market; matching; singles; assortative mating;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - 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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