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Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors

Author

Listed:
  • Derek T. Tharp

    (University of Southern Maine)

  • Elizabeth J. Parks-Stamm

    (University of Southern Maine)

  • Meghaan Lurtz

    (Kansas State University)

  • Michael Kitces

    (Kitces.com)

Abstract

This study examined marital and parental income premiums among financial advisors. Financial advisors provide an interesting context for exploring such premiums, as financial advising is a historically male-dominated profession that has been found to exhibit large unadjusted gender pay gaps. Using a large, cross-sectional sample of financial advisors recruited via a professional continuing education website (n = 459), this study investigates whether gender differences exist among financial advisors with respect to the marriage premium, the parenthood premium, the parental leave effect, and the stay-at-home spouse premium. This study examined premiums both with and without potentially endogenous human capital covariates. Without including potentially endogenous covariates, a marriage premium was observed among men but not women, a parenthood premium was observed among women and a penalty observed among men, a parental leave penalty was observed among neither men nor women, and a stay-at-home spouse premium was observed among men but not women. When potentially endogenous covariates were included, a marriage penalty was observed among women but not men, a parenthood premium was observed among women while a parenthood penalty was observed among men, a parental leave premium was observed among men but not women, and a stay-at-home spouse premium was observed among men while a stay-at-home spouse penalty was observed among women. Exploratory Blinder-Oaxaca decomposition analyses revealed sizeable unadjusted income gaps by gender (15.0%), marriage (40.2%), parenthood (7.4%), parental leave (11.6%), and spousal employment (41.0%).

Suggested Citation

  • Derek T. Tharp & Elizabeth J. Parks-Stamm & Meghaan Lurtz & Michael Kitces, 2022. "Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 15-35, March.
    • Handle: RePEc:kap:jfamec:v:43:y:2022:i:1:d:10.1007_s10834-021-09766-4
    DOI: 10.1007/s10834-021-09766-4
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