Micro and Macro Implications of Household Behaviour and Financial Decision-Making is a new cross-disciplinary seminar series covering research at the intersection of household finance, macro and labour economics. It represents a collaboration between universities and research networks and centres.
 
Seminars are held on Zoom on the third Friday of the month and will run for 90 minutes including a discussion panel.
 
Our second meeting will be on Friday 23rd April from 3:30pm-5:00pm BST and will feature
Luigi Pistaferri (Stanford University and CEPR) presenting Assortative Mating and Wealth Inequality. Discussion by 
Alberto Bisin (New York University and CEPR) and Kelly Shue (Yale University).

Registration Link:
https://us02web.zoom.us/meeting/register/tZUodeyvrzkrE9F7vkaOKZy5K_OrPrPMLcaJ
 
Organisers: Richard Blundell, Michael Haliassos, Christopher Hansman, Yigitcan Karabulut, Peter Levell, Benjamin Moll, Tarun Ramadorai, and Polly Simpson.
            
Abstract:

Population data on capital income and wealth holdings for Norway allow us to measure asset positions and wealth returns before individuals marry and after the household is formed. Using these data we establish a number of novel facts. First, there is assortative mating on the basis of own wealth. Second, assortative mating on own wealth dominates, and in fact statistically annihilates, assortative mating on parental wealth. Third, there is evidence of assortative mating on returns to wealth. Finally, post-marriage returns on family wealth are largely explained by the return of the spouse with the highest pre-marriage return. This suggests that family wealth is largely managed by the spouse with the highest capacity for wealth accumulation. We use simulations to evaluate the effects of assortative mating on wealth, assortative mating on returns, and post-marriage allocation of wealth management tasks on wealth inequality and wealth concentration. Assortative mating on wealth is the dominant force explaining wealth concentration at marriage. Returns heterogeneity resulting from mating on returns and post-marriage allocation of wealth management between spouses plays a dominant role for explaining changes in wealth inequality as couples move through their life cycle.