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Marriage and Wages: A Test of the Specialization Hypothesis

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  • ELENA BARDASI
  • MARK TAYLOR

Abstract

We investigate the relationship between marriage and wages among men in Britain using panel data. Our econometric specifications allow for observed and unobserved heterogeneity and explicitly test the role of intra-household specialization in explaining the observed relationship. Our estimates provide evidence for the existence of large selection effects into marriage based on observable and unobservable characteristics that are positively correlated with wages. After accounting for individual-specific time-invariant effects and a wide range of individual, household, job and employer related characteristics, we find a statistically significant premium that can be attributed to productivity differences largely resulting from intra-household specialization. Copyright (c) The London School of Economics and Political Science 2007.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 75 (2008)
Issue (Month): 299 (08)
Pages: 569-591

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Handle: RePEc:bla:econom:v:75:y:2008:i:299:p:569-591

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Cited by:
  1. repec:ese:iserwp:2011-17 is not listed on IDEAS
  2. Arif Mamun, 2012. "Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 53-68, March.
  3. Alison Booth & Jeff Frank, 2008. "Marriage, partnership and sexual orientation: a study of British university academics and administrators," Review of Economics of the Household, Springer, vol. 6(4), pages 409-422, December.
  4. repec:ese:iserwp:2011-25 is not listed on IDEAS
  5. Longhi, Simonetta & Taylor, Mark, 2011. "Explaining Differences in Job Search Outcomes Between Employed and Unemployed Job Seekers," IZA Discussion Papers 5860, Institute for the Study of Labor (IZA).
  6. Åström, Johanna, 2009. "The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?," HUI Working Papers 34, The Swedish Retail Institute (HUI).
  7. Rob Simmons & David Berri, 2009. "Gains from Specialization and Free Agency: The Story from the Gridiron," Review of Industrial Organization, Springer, vol. 34(1), pages 81-98, February.
  8. Rachel Gordon & Carolyn Heinrich, 2009. "The potential of a couples approach to employment assistance: results of a nonexperimental evaluation," Review of Economics of the Household, Springer, vol. 7(2), pages 133-158, June.
  9. Antecol, Heather & Steinberger, Michael D., 2009. "Female Labor Supply Differences by Sexual Orientation: A Semi-Parametric Decomposition Approach," IZA Discussion Papers 4029, Institute for the Study of Labor (IZA).

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