Educational Homogamy and Inter-Couple Income Inequality: Linking Demographic and Socio-Economic Consequences of Educational Expansion in Germany and Switzerland

Abstract

How is educational expansion associated with increased educational homogamy and income inequality? Using SOEP and SHP panel data, we randomly match couples and compare the resulting income distribution to the observed one. Educational homogamy thereby has had only a marginal impact on earnings-based income inequality between couples, which is largely due to the endogenous decision-making of couples concerning working time.

Keywords

• educational homogamy
• educational expansion
• income inequality
• labor supply