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We develop a method suitable for detecting whether racial homophily is on therise and also whether the economic divide (i.e., the gap between individualswith different education levels and thereby with different abilities togenerate income) is growing in a society. We identify these changes with thechanging aggregate marital preferences over the partners' race and educationlevel through their effects on the share of inter-racial couples and the shareof educationally homogamous couples. These shares are shaped not only bypreferences, but also by the distributions of marriageable men and women bytraits. The method proposed is designed to control for changes in the traitdistributions from one generation to another. By applying the method, we findthe economic divide in the US to display a U-curve pattern between 1960 and2010 followed by its slightly negative trend between 2010 and 2015. Theidentified trend of racial homophily suggests that the American society hasbecome more and more permissive towards racial intermarriages since 1970.Finally, we refute the aggregate version of the status-cast exchange hypothesisbased on the joint dynamics of the economic divide and the racial homophily.

A new method for identifying what Cupid's invisible hand is doing. Is it  spreading color blindness while turning us more "picky'' about spousal  education?