How Can Preferences for Same-Trait Marriage Increase Investment in Education?

Abstract

I model how agents' marriage decisions and schooling investments relate to cultural and religious intragroup preferences. Men and women's incentives to acquire education and marry change depending on their preferences to marry within their own cultural traits, as marital gains are reinforced by same-trait people. The first mechanism is associated with the intergenerational transmission of cultural traits to children through marriage. In addition, the benefit of a higher level of education increases the marital surplus. Both effects increase the proportions of married and educated people in groups where investment in human capital is important.