Dynamics of Wealth Homogamy in Couples

Partners’ resemblance in a given characteristic, also known as homogamy, bears important implications for social structures. Still, research into the extent and determinants of homogamy in wealth is scarce. Using representative household surveys from Britain and Germany, we estimate associations between different-sex partners’ wealth during their first 10 years of cohabitation. We do so to distinguish between mechanisms operating at the beginning vis-à-vis later partnership stages, whose relative importance may differ across context. In both countries, we find positive and substantive associations in partners’ personal net wealth. Wealth homogamy at early partnership stages can be attributed to assortative mating on current and expected future wealth. Wealth homogamy at later partnership stages is further driven by the pooling of resources through joint homeownership in Germany but not Britain. We also find evidence for growing similarity in partners’ saving and investment behavior. Mechanisms that operate over the course of the partnership thus appear critical for wealth homogamy in modern societies.