Educational assortative mating and income differentiation across Europe

Demographic explanations for the rise in household income inequality include increased educational assortative mating (EAM) and changes in the division of paid labour within families. Building on this research, the current study focuses on the connected nature of these two inequality-producing mechanisms, while at the same time bridging the divide with the economic literature on the role of income differentiation. Using data from the 2004-2008 EU-SILC, we consider variation across Europe in the disequalising effect of EAM and relate these patterns to the general characteristics of welfare state regimes, focusing on the degree of gender equality and income differentiation. First, we document large educational differentials in men's and women's income in Eastern Europe, and smaller differentials in Anglo-Saxon, Continental and, especially, Northern Europe. Next, we find that this variation in gender equality and income differentiation parallels variation in the potential contribution of EAM to household income inequality. While all countries display larger educational differentials in household income under the scenario of absolute educational homogamy, the biggest differences are found in Eastern Europe, and the smallest differences in the Nordics. These results suggest that EAM is less disequalising in countries with more gender equality and support for equal opportunities.