Assortative Mating and Income Dynamics of Couples

Christopher Busch, Rocio Madera, Fane Naja Groes

Publikation: KonferencebidragPaperForskningpeer review


We use administrative data on the full Danish population to analyze the relationship between assortative mating and joint dynamics of spouses. This allows us to explore to which extent individual level income risk translates into income risk at the household level and how the success of spouses to provide insurance depends on characteristics of both spouses. If spouses have similar labor market characteristics this translates into correlated incomes, which reduces the scope of insurance. We consider assortative mating along various dimensions, in particular education and career. We then develop and estimate a structural quantitative model, which we use to explore how individuals react to changes in the degree of correlated risks, how the success of within-household insurance against individual labor income risk depends on the degree of sorting, and finally, how changes in the tax and transfer system affect joint income dynamics.
Antal sider6
StatusUdgivet - 2021
Begivenhed2021 Annual Meeting of the Society for Economic Dynamics - Zoom hosted by University of Minnesota, Minneapolis, USA
Varighed: 1 jul. 20213 jul. 2021


Konference2021 Annual Meeting of the Society for Economic Dynamics
LokationZoom hosted by University of Minnesota


  • Assortative mating
  • Income dynamics
  • Family insurance