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Dynamic Effects of Educational Assortative Mating on Labor Supply

Author

Listed:
  • Gihleb, Rania

    () (University of Pittsburgh)

  • Lifshitz, Osnat

    () (Academic College of Tel-Aviv Yaffo)

Abstract

In 30% of young American couples the wife is more educated than the husband. Those women are characterized by a substantially higher employment (all else equal), which in turn amplifies income inequality across couples. Using NLSY79, we formulate and structurally estimate a dynamic life-cycle model of endogenous marriage and labor supply decisions in a collective framework. We establish that the education gap at the time of marriage, produces dynamic effects due to human capital accumulation and implied wage growth. Inequality between couples is largely driven by the persistence in labor supply choices and only slightly affected by assortative matching.

Suggested Citation

  • Gihleb, Rania & Lifshitz, Osnat, 2016. "Dynamic Effects of Educational Assortative Mating on Labor Supply," IZA Discussion Papers 9958, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9958
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    Cited by:

    1. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2016. "Technology and the Changing Family: A Unified Model of Marriage, Divorce, Educational Attainment, and Married Female Labor-Force Participation," American Economic Journal: Macroeconomics, American Economic Association, vol. 8(1), pages 1-41, January.
    2. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0093-3 is not listed on IDEAS

    More about this item

    Keywords

    educational assortative mating; female labor supply; human capital; inequality;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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