This paper examines to what extent marital sorting affects cross-sectional earnings inequality in Germany over the past three decades, while explicitly taking into account labor supply choices. Using rich micro data, the observed distribution of couples' earnings is compared to a counterfactual...

Living arrangements have undergone considerable change in recent decades. In most Western countries marriage is no longer the exclusive context of family formation. In the United States (US) for instance, the number of unmarried couples nearly doubled in the 1990s, from 3:2 million couples in...

The paper analyses alternative investment policies and their consequences for the evolution of human capital in Europe based on a model of age dependent skill formation where the life span depends on investments during childhood. What makes the approach special is the analysis of the returns to...