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Marriage and wages

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  • Bardasi, Elena
  • Taylor, Mark P.

Abstract

This work investigates the commonly observed relationship between marriage and wages among men in Britain using panel data covering the 1990s. We explicitly test several hypotheses developed in the literature to explain this relationship, including the household division of labour and specialisation, differential rates of human capital formation, employer favouritism, and self-selection. After accounting for individual-specific time-invariant effects, and a wide range of individual, household, job and employer related characteristics, we find a small but statistically significant premium remains that can be attributed to productivity differences. Our estimates provide evidence for the existence of a large selection effect into marriage based on both observable and unobservable characteristics that are positively correlated with wages (consistent with employers using marriage as a positive signal), and also evidence in support of the specialisation hypothesis.

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File URL: https://www.iser.essex.ac.uk/publications/working-papers/iser/2005-01.pdf
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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2005-01.

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Date of creation: 01 Jan 2005
Date of revision:
Publication status: published
Handle: RePEc:ese:iserwp:2005-01

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web: https://www.iser.essex.ac.uk/publications/

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References

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  1. Wilson, Chris M & Oswald, Andrew J, 2005. "How Does Marriage Affect Physical and Psychological Health? A Survey of the Longitudinal Evidence," The Warwick Economics Research Paper Series (TWERPS) 728, University of Warwick, Department of Economics.
  2. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  3. Chun, Hyunbae & Lee, Injae, 2001. "Why Do Married Men Earn More: Productivity or Marriage Selection?," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 307-19, April.
  4. Ribar, David C., 2004. "What Do Social Scientists Know About the Benefits of Marriage? A Review of Quantitative Methodologies," IZA Discussion Papers 998, Institute for the Study of Labor (IZA).
  5. Jacobsen, Joyce P & Rayack, Wendy L, 1996. "Do Men Whose Wives Work Really Earn Less?," American Economic Review, American Economic Association, vol. 86(2), pages 268-73, May.
  6. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S11-S26, Part II, .
  7. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  8. Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
  9. Greenhalgh, Christine A, 1980. "Male-Female Wage Differentials in Great Britain: Is Marriage an Equal Opportunity?," Economic Journal, Royal Economic Society, vol. 90(363), pages 751-75, December.
  10. Reed, W Robert & Harford, Kathleen, 1989. "The Marriage Premium and Compensating Wage Differentials," Journal of Population Economics, Springer, vol. 2(4), pages 237-65.
  11. Stutzer, Alois & Frey, Bruno S., 2005. "Does Marriage Make People Happy, Or Do Happy People Get Married?," IZA Discussion Papers 1811, Institute for the Study of Labor (IZA).
  12. Christopher Cornwell & Peter Rupert, 1995. "Marriage and earnings," Economic Review, Federal Reserve Bank of Cleveland, issue Q IV, pages 10-20.
  13. Kermit Daniel, . "Does Marriage Make Men More Productive?," University of Chicago - Population Research Center 92-2, Chicago - Population Research Center.
  14. Robert A. Nakosteen & Michael A. Zimmer, 1987. "Marital Status and Earnings of Young Men: A Model with Endogenous Selection," Journal of Human Resources, University of Wisconsin Press, vol. 22(2), pages 248-268.
  15. Schoeni, Robert F, 1995. "Marital Status and Earnings in Developed Countries," Journal of Population Economics, Springer, vol. 8(4), pages 351-59, November.
  16. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  17. Donna K. Ginther & Madeline Zavodny, 2001. "Is the male marriage premium due to selection? The effect of shotgun weddings on the return to marriage," Journal of Population Economics, Springer, vol. 14(2), pages 313-328.
  18. Eng Seng Loh, 1996. "Productivity Differences and the Marriage Wage Premium for White Males," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 566-589.
  19. Leslie S. Stratton, 2002. "Examining the Wage Differential for Married and Cohabiting Men," Economic Inquiry, Western Economic Association International, vol. 40(2), pages 199-212, April.
  20. Disney, Richard & Whitehouse, Edward, 1996. "What Are Occupational Pension Plan Entitlements Worth in Britain?," Economica, London School of Economics and Political Science, vol. 63(250), pages 213-38, May.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Marriage, wages & exploitation
    by chris dillow in Stumbling and Mumbling on 2011-05-13 13:10:36
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Cited by:
  1. Ramos, Xavi, 2005. "Using Efficiency Analysis to Measure Individual Well-Being with an Illustration for Catalonia," IZA Discussion Papers 1748, Institute for the Study of Labor (IZA).
  2. Waka Cheung & Yew-Kwang Ng, 2011. "Gender Division of Labor and Alimony," Development Research Unit Working Paper Series 17-11, Monash University, Department of Economics.
  3. Booth, Alison L. & Frank, Jeff, 2008. "Marriage, Partnership and Sexual Orientation: A Study of British University Academics and Administrators," IZA Discussion Papers 3510, Institute for the Study of Labor (IZA).
  4. repec:ese:iserwp:2008-03 is not listed on IDEAS
  5. Petersen, Trond & Penner, Andrew & Hogsnes, Geir, 2006. "The Male Marital Wage Premium: Sorting Versus Differential Pay," Institute for Research on Labor and Employment, Working Paper Series qt2053f73v, Institute of Industrial Relations, UC Berkeley.
  6. Cornaglia, Francesca & Feldman, Naomi E., 2011. "Productivity, Wages, and Marriage: The Case of Major League Baseball," IZA Discussion Papers 5695, Institute for the Study of Labor (IZA).

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