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New Evidence Against a Causal Marriage Wage Premium

Author

Listed:
  • Alexandra Killewald

    (Harvard University)

  • Ian Lundberg

    (Princeton University)

Abstract

Recent research has shown that men’s wages rise more rapidly than expected prior to marriage, but interpretations diverge on whether this indicates selection or a causal effect of anticipating marriage. We seek to adjudicate this debate by bringing together literatures on (1) the male marriage wage premium; (2) selection into marriage based on men’s economic circumstances; and (3) the transition to adulthood, during which both union formation and unusually rapid improvements in work outcomes often occur. Using data from the National Longitudinal Survey of Youth 1979, we evaluate these perspectives. We show that wage declines predate rather than follow divorce, indicating no evidence that staying married benefits men’s wages. We find that older grooms experience no unusual wage patterns at marriage, suggesting that the observed marriage premium may simply reflect co-occurrence with the transition to adulthood for younger grooms. We show that men entering shotgun marriages experience similar premarital wage gains as other grooms, casting doubt on the claim that anticipation of marriage drives wage increases. We conclude that the observed wage patterns are most consistent with men marrying when their wages are already rising more rapidly than expected and divorcing when their wages are already falling, with no additional causal effect of marriage on wages.

Suggested Citation

  • Alexandra Killewald & Ian Lundberg, 2017. "New Evidence Against a Causal Marriage Wage Premium," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 1007-1028, June.
  • Handle: RePEc:spr:demogr:v:54:y:2017:i:3:d:10.1007_s13524-017-0566-2
    DOI: 10.1007/s13524-017-0566-2
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    References listed on IDEAS

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    Cited by:

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    2. Miguel Olivo-Villabrille, 2022. "The marital earnings premium: an IV approach," Empirical Economics, Springer, vol. 62(2), pages 709-747, February.
    3. Harkness, Susan, 2022. "The accumulation of disadvantage: how motherhood and relationship breakdown influence married and single mothers’ economic outcomes," ISER Working Paper Series 2022-03, Institute for Social and Economic Research.
    4. Hande Inanc & Ariella Spitzer & Brian Goesling, "undated". "Assessing the Benefits of the Success Sequence for Economic Self-Sufficiency and Family Stability," Mathematica Policy Research Reports c812f6cb5ece40df8265d7eaa, Mathematica Policy Research.
    5. Bredemeier, Christian, 2019. "Gender Gaps in Pay and Inter-Firm Mobility," IZA Discussion Papers 12785, Institute of Labor Economics (IZA).
    6. Derek T. Tharp & Elizabeth J. Parks-Stamm & Meghaan Lurtz & Michael Kitces, 2022. "Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 15-35, March.
    7. John Anders & Craig Wesley Carpenter, 2021. "Run Effects of Military Service: Evidence from the 911 Attacks," Working Papers 21-36, Center for Economic Studies, U.S. Census Bureau.
    8. Alicia H. Munnell & Geoffrey Sanzenbacher & Alice Zulkarnain, 2020. "What Factors Explain the Decline in Widowed Women’s Poverty?," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1881-1902, October.
    9. Kapelle, Nicole & Frémeaux, Nicolas & Lersch, Philipp M. & Leturcq, Marion, 2024. "The Cohabitation Wealth Premium in Context: Comparing France and Eastern and Western Germany," SocArXiv uz74e, Center for Open Science.

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