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The Marriage Earnings Premium as a Distributed Fixed Effect

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  • Christopher Dougherty
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    Abstract

    Wage equations using cross-sectional data typically find an earnings premium in excess of 10 percent for married men. One leading hypothesis for the premium is that marriage facilitates specialization that enables married men to become more productive than single men. Another is that the premium is attributable to an unobserved fixed effect, married men possessing qualities that are valued in the labor market as well as the marriage market. This paper suggests that the premium is attributable to an unobserved timedistributed fixed effect that emerges and grows with the approach of marriage and continues to grow for some years after marriage. A similar distributed fixed effect is found in the case of women, but it is smaller and declines after a few years of marriage. The results appear to cast doubt on the specialization hypothesis.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 41 (2006)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:uwp:jhriss:v:41:y:2006:i:2:p433-443

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Martin Dribe & Jan Van Bavel & Cameron Campbell, 2012. "Social Mobility and Demographic Behaviour: Long Term Perspectives," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 26(8), pages 173-190, March.
    2. Martin Dribe & Paul Nystedt, 2013. "Educational Homogamy and Gender-Specific Earnings: Sweden, 1990–2009," Demography, Springer, Springer, vol. 50(4), pages 1197-1216, August.
    3. Madeline Zavodny, 2008. "Is there a ‘marriage premium’ for gay men?," Review of Economics of the Household, Springer, Springer, vol. 6(4), pages 369-389, December.
    4. Aistov, Andrey, 2013. "Marital wage gap," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 99-114.
    5. Anthony Stair, 2007. "Marital Wage Premium or Ability Selection? The Case of Taiwan 1979-2003," Economics Bulletin, AccessEcon, vol. 10(15), pages 1-11.
    6. Amélie Lafrance & Casey Warman & Frances Woolley, 2009. "Sexual Identity and the Marriage Premium," Carleton Economic Papers, Carleton University, Department of Economics 09-08, Carleton University, Department of Economics.
    7. Fabian Kratz & Josef Brüderl, 2012. "Returns to Regional Migration: Causal Effect or Selection on Wage Growth?," SOEPpapers on Multidisciplinary Panel Data Research, DIW Berlin, The German Socio-Economic Panel (SOEP) 494, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Assaad, Ragui & Krafft, Caroline, 2014. "The economics of marriage in North Africa," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    9. Hällsten, Martin, 2012. "Is it ever too late to study? The economic returns on late tertiary degrees in Sweden," Economics of Education Review, Elsevier, Elsevier, vol. 31(1), pages 179-194.
    10. Rodionova, Lilia, 2013. "Econometric analysis of the effect of marital status change on wages in Russia," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 79-98.
    11. PAN, Jay & QIN, Xuezheng & LIU, Gordon G., 2013. "The impact of body size on urban employment: Evidence from China," China Economic Review, Elsevier, Elsevier, vol. 27(C), pages 249-263.

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