Marital Sorting and Inequality: How Educational Categorization Matters

Frederik Almar, Benjamin Friedrich, Ana Reynoso, Bastian Schulz and Rune Vejlin

No 10265, CESifo Working Paper Series from CESifo

Abstract: This paper revisits the link between education-based marriage market sorting and income inequality. Leveraging Danish administrative data, we develop a novel categorization of marriage market types based on the starting wages and wage growth trajectories associated with educational programs: ambition types. We find a substantial increase in sorting by educational ambition over time, which explains more than 40% of increasing inequality since 1980. In contrast, sorting trends are flat with the commonly used level of education. Hence, the mapping between education and marriage-market types matters crucially for conclusions about the role of marital sorting in rising income inequality.

Date: 2023
New Economics Papers: this item is included in nep-edu, nep-eur and nep-lab
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Citations: View citations in EconPapers (1)

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Working Paper: Marital Sorting and Inequality: How Educational Categorization Matters (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10265

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