Koen Decancq on Assortative mating and long-term trends in US household earnings inequality

Relatore:  Koen Decancq - University of Antwerp
  mercoledì 23 maggio 2012 alle ore 12.30 Aula C, Palazzo di Economia

We study the impact of assortative mating on household earnings inequality in the US between 1978 and 2008. A novel copula-based decomposition method is proposed to unravel the impact of three different channels: (1) the changed assortativeness in the marital selection based on demographic variables such as education and race; (2) the changed assortativeness in the joint labor supply decision and (3) the changed assortativeness in earnings in two-earner couples. We estimate a detailed parametric model of the joint earnings distribution of both partners using data from the Current Population Survey (CPS). A counterfactual analysis of this model shows that the contribution of the former two channels is limited, but that the latter channel contributed to about 12% of the observed increase in earnings inequality.

Eugenio Peluso

Data pubblicazione
23 maggio 2012