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Earnings Inequality and Market Work in Husband-Wife Families

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  • Pencavel, John

    ()
    (Stanford University)

Abstract

Constructing pseudo-panel data from successive Current Population Surveys, this paper analyzes earnings inequality in husband and wife families over the life cycle and over time. Particular attention is devoted to the role of labor supply in influencing measures of earnings inequality. Compact and accurate descriptions of earnings inequality are derived that facilitate the analysis of the effect of the changing market employment of wives on earnings inequality. The growing propensity of married women to work for pay has mitigated the increase in family earnings inequality. Alternative measures of earnings inequality covering people with different degrees of attachment to the labor market are constructed. Inferences about the extent and changes in earnings inequality are sensitive to alternative labor supply definitions especially in the case of wives.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2235.

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Length: 54 pages
Date of creation: Jul 2006
Date of revision:
Publication status: published in: Research in Labor Economics, 2007, 26, 1-37
Handle: RePEc:iza:izadps:dp2235

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Related research

Keywords: hours of work; earnings inequality; married women's employment-population ratios;

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References

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  1. Jeremy Lise & Shannon Seitz, 2004. "Consumption Inequality and Intra-Household Allocations," Working Papers 1019, Queen's University, Department of Economics.
  2. Maria Cancian & Deborah Reed, 1998. "Assessing The Effects Of Wives' Earnings On Family Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 73-79, February.
  3. James P. Smith, 2004. "The Distribution of Family Earnings," Labor and Demography 0408010, EconWPA.
  4. John Pencavel, 2005. "A Life Cycle Perspective on Changes in Earnings Inequality Among Married Men and Women," Discussion Papers 04-036, Stanford Institute for Economic Policy Research.
  5. Lehrer, Evelyn & Nerlove, Marc, 1981. "The Impact of Female Work on Family Income Distribution in the United States: Black-White Differentials," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(4), pages 423-31, December.
  6. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
  7. Pencavel, John, 1998. "Assortative Mating by Schooling and the Work Behavior of Wives and Husbands," American Economic Review, American Economic Association, vol. 88(2), pages 326-29, May.
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