Cohabitating: Financial Reward Different for College Graduates

Just because two people live together doesn’t necessarily mean they will have a higher household income.  The Pew Research Center recently analyzed U.S. Census Bureau data and found that there are 7.5 million couples, in the 30-44 age range, that are cohabitating.  This analysis  indicated that an economic advantage was obtained for those that were college-educated and cohabiting but there wasn’t the same advantage for married couples or those without an opposite-sex cohabitant. 

Pew analyzed their economic well-being and that data was reported in  USAToday: “Median adjusted household incomes of college-educated couples were $106,400 for cohabitors, $101,160 for married couples and $90,067 for adults with no opposite-sex partners. But for less-educated couples, cohabiting is an arrangement that looks a lot like marriage and may well include kids: Incomes were $46,540 for cohabiters, $56,800 for married couples and $45,033 for adults without opposite-sex partners.” 

To read the USAToday article, click here.

Who’s living together?

Partnership status by education

Married, 58%
Cohabitor, 7%
No partner, 35%

Not a college graduate:
Married, 54%
Cohabitor, 8%
No partner, 38%

College graduate:
Married, 68%
Cohabitors, 4%
No partner, 28%

Notes: Based on 30- to 44-year-olds. “No partner” includes those living without an opposite-sex partner or spouse.

Source: 2009 American Community Survey, Pew Research Center