@TechReport{iza:izadps:dp15912, author={Almar, Frederik and Friedrich, Benjamin and Reynoso, Ana and Schulz, Bastian and Vejlin, Rune Majlund}, title={Marital Sorting and Inequality: How Educational Categorization Matters}, year={2023}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={15912}, url={https://www.iza.org/publications/dp15912}, abstract={This paper revisits the link between education-based marriage market sorting and income inequality. Leveraging Danish administrative data, we develop a novel categorization of marriage market types based on the starting wages and wage growth trajectories associated with educational programs: ambition types. We find a substantial increase in sorting by educational ambition over time, which explains more than 40% of increasing inequality since 1980. In contrast, sorting trends are flat with the commonly used level of education. Hence, the mapping between education and marriage-market types matters crucially for conclusions about the role of marital sorting in rising income inequality.}, keywords={marital sorting;inequality;education}, }