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Changes in Assortative Matching and Inequality in Income: Evidence for the UK

Pierre-André Chiappori, Monica Costa Dias, Sam Crossman, Costas Meghir

NBER Working Paper No. 26933
Issued in April 2020, Revised in April 2020
NBER Program(s):Children, Economics of Education, Labor Studies

The extent to which like-with like marry is important for inequality as well as for the outcomes of children that result from the union. In this paper we present evidence on changes in assortative mating and its implications for household inequality in the UK. Our approach contrasts with others in the literature in that it is consistent with an underlying model of the marriage market. We argue that a key advantage of this approach is that it creates a direct connection between changes in assortativeness in marriage and changes in the value of marriage for the various possible matches by education group. Our empirical results do not show a clear direction in the change in assortativeness in the UK, between the birth cohorts of 1945-54 and 1965-74. We find that changes in assortativeness pushed income inequality up slightly, but that the strong changes in education attainment across the two cohorts contributed to scale down inequality.

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Document Object Identifier (DOI): 10.3386/w26933

Published: Pierre-André Chiappori & Monica Costa-Dias & Sam Crossman & Costas Meghir, 2020. "Changes in Assortative Matching and Inequality in Income: Evidence for the UK*," Fiscal Studies, vol 41(1), pages 39-63.

 
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