Developments in the labor market are non-neutral with respect to marriage, divorce, and labor supply decisions of couples. For example, increasing female labor supply may result in lower marital stability. Another branch of the literature shows that an increasing tendency towards education-based positive assortative matching (PAM) has amplified inequality. However, “power couples” might be more likely to divorce, which would limit the effect of sorting on inequality. The goal of the proposed research is to analyze the divorce decisions of heterogeneous couples and to futher our understanding of how labor and marriage markets jointly shape inequality within and between households.
Prof. Dr.
The Faculty of Business Economics,
Hochschule München