%0 Report %A Almar, Frederik %A Friedrich, Benjamin %A Reynoso, Ana %A Schulz, Bastian %A Vejlin, Rune Majlund %T Marital Sorting and Inequality: How Educational Categorization Matters %D 2023 %8 2023 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 15912 %U https://www.iza.org/publications/dp15912 %X 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. %K marital sorting %K inequality %K education