Marital Sorting and Inequality: How Educational Categorization Matters

Autor: Almar, Frederik, Friedrich, Benjamin, Reynoso, Ana, Schulz, Bastian, Vejlin, Rune
Jazyk: angličtina
Rok vydání: 2023
Předmět:
Zdroj: Jensen, F A, Friedrich, B, Reynoso, A, Schulz, B & Vejlin, R M 2023 ' Marital Sorting and Inequality: How Educational Categorization Matters ' IZA Discussion Paper, no. 15912, IZA Institute of Labor Economics .
Popis: 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.
Databáze: OpenAIRE