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Gender imbalance, assortative matching, and household income inequality in China

Published online by Cambridge University Press:  22 December 2025

Chen Huang Open the ORCID record for Chen Huang [Opens in a new window]  and
Serhiy Stepanchuk
Chen Huang*
Affiliation:
PBC School of Finance, Tsinghua University , Beijing, China
Serhiy Stepanchuk
Affiliation:
Department of Economics, University of Southampton, Southampton, UK
*
Corresponding author: Chen Huang; Email: huangch@pbcsf.tsinghua.edu.cn
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Abstract

This paper studies the effect of gender imbalance on assortative matching and household income inequality. Using data across prefectures in China, we show that a higher sex ratio in the marriage market is negatively associated with both assortative marriage and household income inequality. Motivated by empirical evidence, we develop a heterogeneous-agent model to study the mechanism behind the pattern. The quantitative results of the model match the empirical evidence: a higher sex ratio is associated with a lower degree of assortative matching, which leads to a decrease in household income inequality. When we allow men and women to choose their level of education endogenously before entering the marriage market, we find that a higher sex ratio leads to a higher level of education investment among both men and women, with men investing more significantly than women.

Keywords

Sex ratioassortative marriagehousehold income inequalityeducation attainmentJ12J16J24D31

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Type
Articles
Information
Macroeconomic Dynamics , Volume 29 , 2025 , e166
Copyright
© The Author(s), 2025. Published by Cambridge University Press

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