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.”
Who’s living together?
Partnership status by education
No partner, 35%
Not a college graduate:
No partner, 38%
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