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Researchers from the St Louis Federal Reserve have found that online dating may be partially to blame for an increase in household income inequality.
Using data from the Census Bureau’s American Community Survey from 2008 to 2021, during which online dating gained widespread popularity, the economists observed that women increasingly preferred partners based on age, whereas men showed more of a preference for partners based on educational background.
In their 2019 paper, Michael Rosenfeld, Reuben Thomas, and Sonia Hausen also showed a significant shift in how married couples first meet, charting an increase from only 2 percent in 1998 to 20 percent in 2008, and then soaring to nearly 50 percent by 2017. Hence, online meetings have become the predominant way that couples initiate relationships leading to marriage.
Why is online dating causing income inequality?
The study suggests that people increasingly marry someone more like themselves, which can account for approximately half of the increase in household income inequality during this period. People are said to select partners with similar income levels or socio-economic statuses, which can amplify the disparities in income distribution because high-income earners pair up and low-income earners do the same.
The most important factors contributing to household income inequality include selection based on education (35 percent) and skills (30 percent), while selection based on income and age both contribute significantly less at 15 percent each.
They state: “The collective influence of partner selection on household income inequality is substantial, leading to a 14-point increase in the coefficient of variation, or a 3-point increase in the Gini coefficient.”
The Gini coefficient is a common measure of income inequality within a group, with values ranging from 0 (perfect equality) to 1 (perfect inequality). A 3-point increase in this coefficient indicates a noticeable rise in income inequality. This increase is attributed to the way partners are selected, reinforcing the gap between the incomes of the richest and poorest in society.
With the proliferation of online dating, analysts had expected to see substantial improvement in the ability to find and meet potential partners, because of reduced search costs and advances in search technology. However, the research reveals that search costs have remained constant over time, despite the extensive use of online dating platforms and apps.
In February, ReadWrite reported that cybersecurity firm McAfee found artificial intelligence (AI) is now playing an increasing role in online dating, but also fueling a rise in romance scams, fake profiles, and inauthentic descriptions. Whether this will disrupt the use of dating apps remains to be seen.
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