Marriage market sorting, labour market sorting, and inequali

Marriage market sorting, labour market sorting, and inequality


Sandra Black, Alexandra Spitz-Oener
Progress in closing gender gaps has been made, but women around the world still earn less than men in the labour market (Ciminelli and Schwellnus 2021, Sánchez-Mangas and Sanchez-Marcos 2020, Bøler et al. 2015). At the same time, income inequality across households has increased in recent decades (Greenwood et al. 2014 and 2016). 
A growing literature studies the link between labour market choices and gender earnings gaps, particularly the effects of lower labour force participation and fewer hours worked by women (Adda et al. 2017, Goldin 2014, Cortés and Pan 2019). Furthermore, positive sorting in the labour market – the fact that more skilled workers are employed in more demanding jobs and work for more productive firms – has been shown to fuel wage inequality (Lindenlaub 2017). Other areas of research have shown that positive sorting in the marriage market – the fact that similarly educated individuals tend to marry each other – puts upward pressure on between-household inequality (Lise and Seitz 2011, Dupuy and Weber 2018). However, no previous analysis of inequality featured both the marriage and the labour market in equilibrium. 

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