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Gender imbalance, assortative matching, and household income inequality in China

Chen Huang and Serhiy Stepanchuk

Macroeconomic Dynamics, 2025, vol. 29, -

Abstract: This paper studies the effect of gender imbalance on assortative matching and household income inequality. Using data across prefectures in China, we show that a higher sex ratio in the marriage market is negatively associated with both assortative marriage and household income inequality. Motivated by empirical evidence, we develop a heterogeneous-agent model to study the mechanism behind the pattern. The quantitative results of the model match the empirical evidence: a higher sex ratio is associated with a lower degree of assortative matching, which leads to a decrease in household income inequality. When we allow men and women to choose their level of education endogenously before entering the marriage market, we find that a higher sex ratio leads to a higher level of education investment among both men and women, with men investing more significantly than women.

Date: 2025
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