Female education, marital assortative mating, and dowry: Theory and evidence from districts of India

We study marital assortative mating in education and its relation to dowry in India. There are four main results and contributions of this paper. First, instrumental variable estimates using Indian Human Development Survey-II data suggest existence of positive assortative mating in education levels of husband and wife. Second, this association is weaker in dowry-prominent districts suggesting that in districts with strong patriarchal norms, high dowry transfers could substitute for lower bride's education. Third, we study the independent effect of husband's and wife's education and its interaction on dowry. Estimates suggest that dowry rises with the groom's education and falls with the bride's schooling years. However, the joint effect of husband-and-wife education on dowry is negative, implying that though dowry rises with groom's education, the rate of increase is smaller the more educated the bride is. Finally, to explain the empirical results, we propose a theoretical model of assortative mating in the presence of dowry.