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Dynamic Effects of Educational Assortative Mating on Labor Suppy

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  • Rania Gihleb

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.

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  • Rania Gihleb, 2016. "Dynamic Effects of Educational Assortative Mating on Labor Suppy," Working Paper 5856, Department of Economics, University of Pittsburgh.
    • Handle: RePEc:pit:wpaper:5856
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    2. 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.
    3. Sukanya Basu, 2017. "Household labor supply and intermarriage of immigrants: differences by gender," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-25, December.
    4. de la Croix, David & Pommeret, Aude, 2021. "Childbearing postponement, its option value, and the biological clock," Journal of Economic Theory, Elsevier, vol. 193(C).
    5. Eckstein, Zvi & Keane, Michael P. & Lifshitz, Osnat, 2023. "What Explains the Growing Gender Education Gap? The Effects of Parental Background, the Labor Market and the Marriage Market on College Attainment," IZA Discussion Papers 16612, Institute of Labor Economics (IZA).
    6. You, Jing & Yi, Xuejie & Chen, Meng, 2021. "Love, life, and “leftover ladies” in urban China: Staying modernly single in patriarchal traditions," China Economic Review, Elsevier, vol. 68(C).

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    More about this item

    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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