Australians are coupling up with people of similar socio-economic status, perpetuating inequality and fuelling house price growth in cities, according to new research by the e61 Institute.
The analysis of 2021 Census data finds that in 38% of working age couples, both partners have a university degree, far higher than would occur under random matching. Bachelor’s degree holders, for example, are about 85% more likely to partner with another bachelor’s graduate than chance would predict.
Coupling up based on social-economic background is known as assortative mating.
“Because higher education is strongly linked to lifetime earnings, this means higher incomes are increasingly being combined within the same households. This has a large impact on inequality,” said Elyse Dwyer, Senior Research Economist at the e61 Institute.
“Assortive mating also strengthens the persistence of economic status across generations because high-income couples can more easily buy into higher-opportunity neighbourhoods, support longer periods of study for their children and provide financial assistance to them in adulthood.”
The study also found 85% of couples where both partners are university-educated live in cities, compared with 64% of couples where neither partner has a university degree
“Highly educated couples are much more likely to live in cities because large urban labour markets make it easier for two careers to coexist,” Ms Dwyer said.
“Over time, this concentrates housing demand in major cities and adds to price pressures, especially in suburbs close to employment opportunities.
“To address these pressures, reforms to boost housing supply could allow more people to live in high-demand locations closer to jobs. Better transport links and remote-work options could allow people to access more job opportunities from where they live.”
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