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Educational Ambition, Marital Sorting, and Inequality

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 “ambition types” that is based on starting wages and wage growth trajectories associated with detailed educational programs. We find a substantial increase in assortative matching by educational ambition over time, and the marriage market explains more than 40% of increasing inequality since 1980. In contrast, sorting trends are flat with the commonly-used educational level categorization. We conclude that the mapping from education to types matters crucially for conclusions about how education-based marriage market sorting contributes to rising income inequality.

Suggested Citation

  • Almar, Frederik & Friedrich, Benjamin & Reynoso, Ana & Schulz, Bastian & Vejlin, Rune Majlund, 2025. "Educational Ambition, Marital Sorting, and Inequality," IZA Discussion Papers 17814, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17814
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    More about this item

    Keywords

    inequality; marital sorting; 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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