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How Families Matter for Understanding Economic Inequality

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  • Cezar Santos
  • Michèle Tertilt

Abstract

In this paper we discuss the importance of families for understanding economic inequality. Family structure can in principle be an amplifier or mitigator of economic inequality. We describe three channels on how families shape economic inequality. First, how people match to form families matters for inequality across families. Second, parental investments in children can amplify existing inequalities across generations. Third, inequality can exist even within families and the economic environment can shape inequality in consumption and leisure between spouses. In this survey we describe these channels and discuss the related literature.

Suggested Citation

  • Cezar Santos & Michèle Tertilt, 2023. "How Families Matter for Understanding Economic Inequality," CRC TR 224 Discussion Paper Series crctr224_2023_456, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2023_456
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp456
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    References listed on IDEAS

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    1. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2014. "Marry Your Like: Assortative Mating and Income Inequality," American Economic Review, American Economic Association, vol. 104(5), pages 348-353, May.
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    More about this item

    Keywords

    families; inequality; marriage; children;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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