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Income Inequality and Marriage

Author

Listed:
  • Myeong Hwan Kim

    (State University of New York at New Paltz)

  • Soung Chan Lee

    (Plymouth State University)

  • Kwang Woo Park

    (Minnesota State University, Mankato)

Abstract

This study examines the extent to which changes in household formation exacerbated income inequality in the United States during the last two generations. Using a time-varying parameter model, the impact on how marriage decisions, changes in human capital, and fertility choices influence inequality are estimated. The estimation results show that marital sorting evolves over time and positively and increasingly affects the degree of income inequality and intergenerational human capital transmission induces path-dependent income distribution dynamics. This suggests that intrahousehold choices explain a substantial proportion of income distribution dynamics.

Suggested Citation

  • Myeong Hwan Kim & Soung Chan Lee & Kwang Woo Park, 2007. "Income Inequality and Marriage," Economics Bulletin, AccessEcon, vol. 15(20), pages 1-12.
    • Handle: RePEc:ebl:ecbull:eb-07o10035
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • J1 - Labor and Demographic Economics - - Demographic Economics

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