Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 10-17: Male and Female Marriage Returns to Schooling

Gustaf Bruze ()
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Gustaf Bruze: Department of Economics, Aarhus School of Business, Postal: Department of Economics, Hermodsvej 22, 8230 Aabyhøj, Denmark

Abstract: A collective marriage matching model is estimated and calibrated to quantify the share of returns to schooling that is realized through marriage. The predictions of the model are matched with US data on the relationship between schooling and wage rates, the division of time within the household, and the extent to which men and women sort positively on several traits in marriage. Counterfactual analysis conducted with the model, suggests that US middle aged men and women are earning in the order of 30 percent of their return to schooling through improved marital outcomes.

Keywords: Marriage; Sorting; Returns to Education

JEL-codes: D10; I21; J12

54 pages, November 1, 2010

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