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Marriage Meets the Joneses
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Journal Article
Marriage Meets the Joneses
2011
Overview
This paper investigates the effect of relative income on marriage. Accounting flexibly for absolute income, the ratio between a man's income and a local reference group median is a strong predictor of marital status, but only for low-income men. Relative income affects marriage even among those living with a partner. A ten percent higher reference group income is associated with a two percent reduction in marriage. We propose an identity model to explain the results.This paper investigates the effect of relative income on marriage. Accounting flexibly for absolute income, the ratio between a man's income and a local reference group median is a strong predictor of marital status, but only for low-income men. Relative income affects marriage even among those living with a partner. A ten percent higher reference group income is associated with a two percent reduction in marriage. We propose an identity model to explain the results.
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