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The Justice of Earnings in Dual-Earner Households

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  • Stefan Liebig
  • Carsten Sauer
  • Jürgen Schupp

Abstract

The rise in female labor market participation and the growth of "atypical" employment arrangements has, over the last few decades, brought about a steadily decreasingpercentage of households in which the man is the sole breadwinner, and a rising percentage of dual-earner households. Against this backdrop, the present paper investigates the impact of household contexts in which the traditional male breadwinner model has been called into question on individuals' subjective evaluations of the equity or inequity of their personal earnings. In the first step, based on social production function theory, we derive three criteria used by individuals to evaluate the fairness or justice of their personal earnings: compensation for services rendered, coverage of basic needs, and the opportunity to earn social approval. In the second step, we apply considerations from household economics and new approaches from gender research to explain why men's and women's evaluations of justice are determined to a considerable degree by the specific situation within their household - for example, by the status and income relation between the two partners. The assumptions derived regarding gender-specific patterns in justice attitudes are then tested on data from the German Socio-Economic Panel Study (SOEP) from the year 2007. We find that, among women, the perceived justice of personal earnings depends much more strongly on the particular household context. At the same time, opportunities for social comparison within the household and the relation between the woman's personal income and that of her husband play central roles. Men's justice evaluations, in contrast, are determined to a much greater extent by whether their income allows them to conform to traditional gender norms and concepts of "masculinity", and by so doing, to gain social approval outside the household as well.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 216.

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Length: 21 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp216

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References

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  1. Cohen-Charash, Yochi & Spector, Paul E., 2001. "The Role of Justice in Organizations: A Meta-Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 278-321, November.
  2. Fehr, Ernst & Schmidt, Klaus M., 2005. "The Economics of Fairness, Reciprocity and Altruism – Experimental Evidence and New Theories," Discussion Papers in Economics 726, University of Munich, Department of Economics.
  3. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S33-58, January.
  4. Armin Falk & Urs Fischbacher, 2001. "A Theory of Reciprocity," CESifo Working Paper Series 457, CESifo Group Munich.
  5. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  6. Michael Bittman & Paula England & Nancy Folbre & George Matheson, 2001. "When Gender Trumps Money: Bargaining and Time in Household Work," JCPR Working Papers 221, Northwestern University/University of Chicago Joint Center for Poverty Research.
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Cited by:
  1. Carsten Sauer & Peter Valet & Stefan Liebig, 2013. "The Impact of within and between Occupational Inequalities on People's Justice Perceptions towards Their Own Earnings," SOEPpapers on Multidisciplinary Panel Data Research 567, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Hellberg-Bahr, Anneke & Spiller, Achim, 2012. "How to Treat Farmers Fairly? Results of a Farmer Survey," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 15(3).

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