Inequality and Assortative Mating in Iceland

Abstract

This paper examines income inequality and assortative mating in Iceland between 1981 and 2022, using administrative microdata. While individual income inequality has remained relatively stable, household and couple income inequality have increased. Over the same period, we document a rise in assortative mating. We estimate trends in the association between partners’ incomes and find a significant increase in sorting over time. Assortative mating by education increased among individuals with primary and secondary education, whereas it declined among those with a college degree. Although sorting declined among college graduates, the population-weighted measure shows an overall rise in educational assortative mating.