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Labor Immobility and the Formation of Gender Wage Gaps in Local Markets

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  • Ofek, Haim
  • Merrill, Yesook
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    Abstract

    Family ties have an important effect on the wage gap between male and female workers because wives are often more geographically tied to their husband's location, which may not be the best market for the wife's skills. Theory implies a testable inverse relationship between urban size--reflecting labor market size--and male-female wage differentials. The authors' results indicate that the wage gap between married men and women narrows with urban size. About 17 percent of the wage gap between married men and women can be accounted for by urban size--or, more fundamentally, by geographic immobility due to the family tie constraint. Copyright 1997 by Oxford University Press.

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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Economic Inquiry.

    Volume (Year): 35 (1997)
    Issue (Month): 1 (January)
    Pages: 28-47

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    Handle: RePEc:oup:ecinqu:v:35:y:1997:i:1:p:28-47

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    Cited by:
    1. Janice Compton & Robert A. Pollak, 2004. "Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas," NBER Working Papers 10918, National Bureau of Economic Research, Inc.
    2. Michael Quinn & Stephen Rubb, 2011. "Spouse Overeducation and Family Migration: Evidence from the US," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 36-45, March.
    3. B├╝chel, Felix & Battu, Harminder, 2002. "The Theory of Differential Overqualification: Does it Work?," IZA Discussion Papers 511, Institute for the Study of Labor (IZA).
    4. Dora L. Costa & Matthew E. Kahn, 1999. "Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990," NBER Working Papers 7109, National Bureau of Economic Research, Inc.
    5. Julie L. Hotchkiss & Myriam Quispe-Agnoli, 2008. "The labor market experience and impact of undocumented workers," Working Paper 2008-07, Federal Reserve Bank of Atlanta.
    6. Battu, H. & Seaman, P.T & Sloane, P.J., . "Are Married Women Spatially Constrained? A test of gender differentials in labour market outcomes," Working Papers 98-07, Department of Economics, University of Aberdeen.
    7. Murphy, Kevin J., 2007. "The impact of unemployment insurance taxes on wages," Labour Economics, Elsevier, vol. 14(3), pages 457-484, June.

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