Educational Homogamy: Preferences or Opportunities?

Individuals match on length and type of education. We investigate whether the systematic relationship between educations of partners is explained by opportunities (e.g. low search frictions) or preferences (e.g. complementarities in household production or portfolio optimization). We find that half of the systematic sorting on education is due to low search frictions in marriage markets of the educational institutions. The other half is attributed to complementarities in household production, since income properties of the joint income process show no influence on partner selection.positive assortative matching on education; search frictions; hedging; complementarities in household production

Educational Homogamy: Preferences or Opportunities?

Individuals match on length and type of education. We investigate whether the systematic relationship between educations of partners is explained by opportuni- ties (e.g. low search frictions) or preferences (e.g. complementarities in household production or portfolio optimization). We find that half of the systematic sorting on education is due to low search frictions in marriage markets of the educational institutions. The other half is attributed to complementarities in household pro- duction, since income properties of the joint income process show no influence on partner selection.positive assortative matching on education, search frictions, hedging, complementarities in household production

Educational Homogamy: How Much is Opportunities?

Individuals match on length and type of education. We find that around half of the systematic sorting on education is explained by the tendency of individuals to marry someone who went to the same educational institution or to an institution near them. This may be due to low search frictions or selection of people with the same preferences into the same institutions. The residual half of the systematic sorting on education is a direct effect of partners’ education, which is potentially explained by complementarities in household production in couples with same education.