A new method for identifying the role of marital preferences at shaping marriage patterns

Anna Nazszodi and Francisco Mendonca
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Anna Nazszodi: European Commission, Joint Research Center

JODE - Journal of Demographic Economics, 2023, vol. 89, issue 1, 1-27

Abstract: We develop a method which assumes that marital preferences are characterized either by the scalar-valued measure proposed by Liu and Lu, or by the matrix-valued generalized Liu–Lu measure. The new method transforms an observed contingency table into a counterfactual table while preserving its (generalized) Liu–Lu value. After exploring some analytical properties of the new method, we illustrate its application by decomposing changes in the prevalence of homogamy in the US between 1980 and 2010. We perform this decomposition with two alternative transformation methods as well where both methods capture preferences differently from Liu and Lu. Finally, we use survey evidence to support our claim that out of the three considered methods, the new transformation method is the most suitable for identifying the role of marital preferences at shaping marriage patterns. These data are also in favor of measuring assortativity in preferences à la Liu and Lu.

Keywords: ALtham’s Index; Assortative mating; Choo-Siow Model; Conterfactual decompposition; Education homogamy; Generalised Liu-Lu measure; Index of Marital preferences; Iterative proportional fitting algorithm; Liu-Lu measure; Marital sorting parameter (search for similar items in EconPapers)
JEL-codes: C02 J12 (search for similar items in EconPapers)
Date: 2023-03-01
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvde:v:89:y:2023:i:1:p:1-27

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