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Title: Spouses' income association and inequality: A non-linear perspective

Citation Type: Working Paper

Publication Year: 2019

Abstract: We analyze the association between spouses' incomes using a rank-rank specification that takes non­linearities along both spouses' income distribution into account. We also document that the relationships between income and labor force participation and income and couple formation are non-linear. Using simulations, we then analyze how changes in spouses' rank-dependence structure, labor force participation and couple formation contribute to the upsurge of income inequality in the U.S between 1973 and 2013. We find that an increased tendency towards positive sorting contributed substantially to the rise in inequality among dual-earner couples, but contributed little to overall inequality across households. When considering all households, the factor accounting most for the increased inequality during this period is an increased tendency for individual men and women 10 remain single.

Url: http://humcap.uchicago.edu/RePEc/hka/wpaper/Grossbard_Mangiavacchi_Nilsson_etal_2019_spouses-income-inequality.pdf

User Submitted?: No

Authors: Grossbard, Soshana; Mangiavacchi, Lucia; Nilsson, William; Piccoli, Luca

Series Title: Human Capital and Economic Opportunity Global Working Group

Publication Number: 2019-076

Institution: The University of Chicago

Pages: 40

Publisher Location:

Data Collections: IPUMS CPS

Topics: Family and Marriage, Labor Force and Occupational Structure, Other

Countries:

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