One Cause of Inequality: More Rich Marrying Each Other

by James on January 29, 2014 · 3 comments

inequality, rich becomes richer, rich marryingHi All,

If you haven’t had a chance to check it out, there is a great article at the Wall Street Journal’s Real Time Economics blog. Evidently the latest research on why America is becoming increasing unequal says inequality is partly because of intermarriage among the rich. That is to say, billionaires and millionaires marry each other instead of common folk, resulting in even richer billionaires and millionaires.

It’s an interesting idea. What is definitely known is that marriage tends to increase wealth and visa versa, that wealth increases your chances of marriage. So if you’re single and looking for an actionable plan to increase your bottom line, consider getting some money and finding financially promising partner.

Here is an excerpt from the Article:

The paper, “Marry Your Like: Assortative Mating and Income Inequality,” finds that the rise of women in the workforce and a growing tendency to find a partner from a similar educational and professional background is exacerbating income trends.

The upshot: The rich are getting richer. In 1960, a household in the top 10% earned about three-and-a-half times the mean U.S. income. In 2005, that had jumped to more than four times the mean. For the bottom 10%, the situation has deteriorated. In 1960, such a household earned 16% of mean income. By 2005, that was down to 8%.

For the article click here.

Here is a link to the articles source research.



{ 3 comments… read them below or add one }

1 Simon @ Modest Money January 30, 2014 at 4:46 am

I wouldn’t say am surprised. From earlier days people have tried to “keep wealth in the family” by marrying family friends etc who needless to say are in the same or near wealth brackets. Wouldn’t blame them really, you tend to marry people you interact with and are comfortable with and maybe, they just rarely interact with the “average folks”!

2 James January 30, 2014 at 7:20 am

Simon,

Thanks for the comment. I would just add this to the discussion…while speculative it may be that members of the super rich are strategic about who they choose to marry, that is they might choose to marry someone explicetly considering that persons wealth.

Thanks,

James

3 Kathy January 30, 2014 at 9:29 am

Don’t mention this to the government. They’ll be trying to legislate who we marry so everyone gets (or pays) their fair share.

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