The next part examines the fresh ramifications of those outcomes for aggregate-level family relations income inequality

We y so you can income inequality to the bits on account of alterations in monetary homogamy before and after parenthood, and in addition we disaggregate the new piece inside each one of these pieces that are inspired of the alterations in ladies work.

Building with the early in the day literary works, i reach several standard concerning drivers out-of alterations in couples’ financial homogamy ranging from 1968 and 2015. Earliest, i anticipate you to definitely alterations in spouses’ monetary resemblance shortly after parenthood will play a major part in explaining increases when you look at the couples’ financial homogamy and additionally be mostly driven by changes in women’s a career. 2nd, i anticipate you to alterations in spouses’ financial similarity just before parenthood will play a smaller role into the detailing increases for the couples’ economic homogamy and therefore this type of changes is determined a lot more of the shifts within the ladies a position habits between the beginning of the matrimony and you can parenthood and you may less by alterations in assortative mating once the mentioned beforehand of wedding. In the event that all of our standard try correct, we shall discover that alterations in how parenthood shapes ladies financial contributions in order to group is a button driver of the sum regarding monetary homogamy so you’re able to inequality all over group.

Research, Examples, and Strategies

Because found when you look at the Desk 1, we explore data of three studies in order to make our very own analyses: the newest 19682015 March Current People Surveys (CPS); brand new 1960, 1970, and you may 1980 You.S. ); and the 19842014 Questionnaire cash and you may Program Participation (SIPP) (U.S. Census Agency 2015). The brand new CPS try our priining trends from inside the monetary homogamy just before and immediately after parenthood. It is a corner-sectional family survey which had been commonly regularly data change into the inequality in the united states. It is well-suited to our research because it enjoys highest trials, has income information on each other people, and that’s consistent across the an extended span of time. Brand new CPS boasts information about the age of the brand new oldest youngster from the family, and that i use to proxy new time regarding entry towards the parenthood.

A lot of the CPS analyses believe in an example from married people the spot where the wife is ages forty-five otherwise younger and you will their oldest youngster try age 010 (Letter = 333,455 people). Brand new weighted CPS test are associate of one’s noninstitutionalized populace out-of heterosexual married people in america in which neither partner is in the military, this new spouse is actually decades forty five or young, in addition to couple’s earliest child is decades 010. New CPS details annual earning methods from the previous season, for example the earnings stated by the partners that have a newborn match income in before childbirth. We influence this feature and rehearse couples’ income from the seasons just before childbirth determine pre-delivery homogamy and you can people throughout the ten years immediately after parenthood to help you size article-delivery homogamy.

Method

Brand new CPS analysis do not allow us to identify the fresh time regarding income in accordance with parenthood for people supposed subsequent back than simply one year ahead of basic beginning. One method to expand the latest pre-birth homogamy measure which have CPS investigation, yet not, would be to include all of the hitched childless partners (see the last row in Desk step one). This sensitiveness try develops the new measurement window of earnings so you’re able to alot more than just the season in advance of birth, where income would be affected by pregnancy; additionally testing the fresh awareness in our brings about alterations in possibilities to the parenthood, once the not every one of people partners will changeover so you can parenthood inside the then decades. In other sensitiveness analyses, we plus expand the newest dimensions screen off article-birth homogamy to add couples having an oldest very own child years 018. I maximum the main attempt in order to young mothers to reduce the brand new introduction regarding repartnered couples, attrition because of divorce, and more mature partners having youngsters from the house which means perhaps not said towards the CPS lineup.