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The evolution of the marriage premium in the Swedish labor market 1968-1991

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  • Richardson, Katarina

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    (IFAU - Office of Labour Market Policy Evaluation)

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    Abstract

    Married, cohabiting, and divorced men in Sweden earn more than single men. The wage premium earned by married men has declined since 1968, mainly due to decreasing productivity differences between married and single men. During this period, reforms have been undertaken to induce spouses to share labor market and housework more equally. If this wage differential reflects specialization within households, we would expect it to decline. Using longitudinal data, the results indicate that the wage premiums mainly reflect gains from partnership. Selection based on unobserved productivity into partnership can only partly explain the wage differentials by marital status. However, I do not find that the marriage premium increases with time married as also implied by the specialization hypothesis.

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    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2000:5.

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    Length: 23 pages
    Date of creation: 13 Jun 2000
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2000_005

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    Keywords: Marriage; Wage differentials;

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    References

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    1. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series 29, Board of Governors of the Federal Reserve System (U.S.).
    2. Sanders Korenman & David Neumark, 1990. "Marriage, Motherhood, and Wages," NBER Working Papers 3473, National Bureau of Economic Research, Inc.
    3. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
    4. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
    5. Per-Anders Edin & Bertil Holmlund, 1995. "The Swedish Wage Structure: The Rise and Fall of Solidarity Wage Policy?," NBER Chapters, in: Differences and Changes in Wage Structures, pages 307-344 National Bureau of Economic Research, Inc.
    6. Schoeni, Robert F, 1995. "Marital Status and Earnings in Developed Countries," Journal of Population Economics, Springer, vol. 8(4), pages 351-59, November.
    7. Duncan, Greg J. & Holmlund, Bertil, 1983. "Was Adam Smith Right, After All? Another Test of the Theory of Compensating Wage Differentials," Working Paper Series 93, Research Institute of Industrial Economics.
    8. 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.
    9. Reed, W Robert & Harford, Kathleen, 1989. "The Marriage Premium and Compensating Wage Differentials," Journal of Population Economics, Springer, vol. 2(4), pages 237-65.
    10. Schmidt, Peter, 1977. "Estimation of seemingly unrelated regressions with unequal numbers of observations," Journal of Econometrics, Elsevier, vol. 5(3), pages 365-377, May.
    11. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    12. Jeffrey S. Gray, 1997. "The Fall in Men's Return to Marriage: Declining Productivity Effects or Changing Selection?," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 481-504.
    13. Becker, Gary S & Landes, Elisabeth M & Michael, Robert T, 1977. "An Economic Analysis of Marital Instability," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1141-87, December.
    14. Blackburn, McKinley & Korenman, Sanders, 1994. "The Declining Marital-Status Earnings Differential," Journal of Population Economics, Springer, vol. 7(3), pages 247-70, July.
    15. Yuanreng Hu & Noreen Goldman, 1990. "Mortality Differentials by Marital Status: An International Comparison," Demography, Springer, vol. 27(2), pages 233-250, May.
    16. Hersch, Joni & Stratton, Leslie S, 1994. "Housework, Wages, and the Division of Housework Time for Employed Spouses," American Economic Review, American Economic Association, vol. 84(2), pages 120-25, May.
    17. Daniel, K., 1991. "Does Marriage Make Men More Productive?," University of Chicago - Economics Research Center 92-2, Chicago - Economics Research Center.
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    Cited by:
    1. Selén, Jan & Ståhlberg, Ann-Charlotte, 2000. "Survivor's Pension Rights and Wages," Working Paper Series 5/2000, Swedish Institute for Social Research.

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