Summary of Income Changes since 1960A new working paper by an international team of economists finds that better educated people are increasingly more likely to marry other better-educated people while those with less formal schooling are more likely to choose a less well-educated partner.
As a consequence, income inequality has increased because education is strongly correlated with income—the more schooling you have, the more money you typically earn...
Virtually across the board, the income gap between couples with relatively high and those with relatively low levels of education had widened substantially since 1960 relative to the average household income.
For example, in 1960, a husband and wife, each with a high school education, would earn about 103% of the average household income. But in 2005, that same couple would earn only about 83% of the average. At the other end of the education spectrum, a couple in which both partners had done post-graduate work earned about 176% of the mean household income in 1960 but a whopping 219% in 2005.
Expressed another way, the relative earnings of couples with high school degrees had fallen by 20 percentage points relative to the average while the household incomes of highly educated husbands and wives had increased by 43 points. ---PewResearch Fact Tank
Well educated couples +43%
Less educated couples -20%
Two QuestionsA recent USA TODAY/Pew Research Center poll shows that the majority of the population thinks “the economic system in the country unfairly favours the wealthy” and that the government should do “a lot to reduce the gap between the rich and everyone else.” ... In his 2014 State of the Union Address, US president Barack Obama promised to tackle economic inequality ... --VOX
One
Two well educated people marrying each other. I always perceived that this was a good thing. But since it leads to increased income inequality, is this not such a good thing? What is your opinion?
Two
How, if at all, should this academic finding impact the administration's promise to tackle economic inequality? What is your opinion?
Uno