The Effect of Assortative Mating on Wealth Inequality, why do the Rich Choose the Rich?

Abstract

This paper unravels the effect of assortative mating on wealth inequality. In light of the reviewed literature, it is concluded that there is a significant effect of assortative mating on wealth inequality, it is mainly driven by similarity in background and similar views on lifestyle, including saving habits. These findings are in line with the matching hypothesis. However, the competition hypothesis of having an inherent interest in a partner with a high socio-economic status cannot be ruled out. Another relevant finding highlights how redistributive policies might enable individuals to cross social boundaries when partnering up and foster social cohesion.

Keywords

• assortative mating
• wealth inequality
• homogamy
• matching hypothesis