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How Much Does Marital Sorting Contribute to Intergenerational Socioeconomic Persistence?

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  • Helena Holmlund
Abstract
This work investigates to what extent assortative mating contributes to intergenerational earnings persistence. I use an errors-in-variables model to demonstrate how pooling of partners’ “potential” earnings affects intergenerational earnings persistence, and I simulate persistence under different assumptions about assortative mating and women’s earnings distribution. Using Swedish data on cohorts born 1945-1965 and rank-based measures, I show that a substantial decline in marital sorting has contributed little to lowering intergenerational persistence. The intergenerational elasticity (IGE) is, however, more sensitive to sorting, in particular for women. Overall, variations in marital sorting must be large to affect intergenerational mobility to a great extent. Instead, the relative earnings distributions of men and women, in combination with sorting, are important for intergenerational persistence.

Suggested Citation

  • Helena Holmlund, 2022. "How Much Does Marital Sorting Contribute to Intergenerational Socioeconomic Persistence?," Journal of Human Resources, University of Wisconsin Press, vol. 57(2), pages 372-399.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:2:p:372-399
    Note: DOI: 10.3368/jhr.57.2.0519-10227R1
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    Cited by:

    1. Monique De Haan & Magnus Stubhaug, 2024. "The Causal Component in the Intergenerational Transmission of Income," CESifo Working Paper Series 11395, CESifo.
    2. Nybom, Martin & Plug, Erik & van der Klaauw, Bas & Ziegler, Lennart, 2022. "Skills, Parental Sorting, and Child Inequality," IZA Discussion Papers 15824, Institute of Labor Economics (IZA).
    3. Daniel S. Hamermesh & Anwen Zhang, 2024. "The Economic Impact of Heritable Physical Traits: Hot Parents, Rich Kid?," NBER Working Papers 32086, National Bureau of Economic Research, Inc.
    4. Jonathan Davis & Bhashkar Mazumder, 2017. "The Decline in Intergenerational Mobility After 1980," Working Paper Series WP-2017-5, Federal Reserve Bank of Chicago, revised 14 Jan 2022.

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    More about this item

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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