TY - RPRT AU - Almar, Frederik AU - Friedrich, Benjamin AU - Reynoso, Ana AU - Schulz, Bastian AU - Vejlin, Rune Majlund TI - Marital Sorting and Inequality: How Educational Categorization Matters PY - 2023/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 15912 UR - https://www.iza.org/publications/dp15912 AB - 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. KW - marital sorting KW - inequality KW - education ER -