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A Life Cycle Perspective on Changes in Earnings Inequality among Married Men and Women

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  • John Pencavel

Abstract

The connection between changes in earnings inequality of individuals and changes in family earnings involves several links: the movements in the employment of different family members, the association between changes in husbands' and in wives' earnings, and patterns of assortative mating. A decomposition of the logarithm of the coefficient of variation in family earnings identifies these links. The data on the dispersion of family earnings are organized not simply over time, but also by age. The growth in wives' relative employment and earnings has partly offset the effects on family earnings inequality of the increase in husbands' earnings inequality. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest.88.2.232
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Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 88 (2006)
Issue (Month): 2 (May)
Pages: 232-242

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Handle: RePEc:tpr:restat:v:88:y:2006:i:2:p:232-242
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Find related papers by JEL classification:
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
  • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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  1. Orazio Attanasio & Gabriella Berloffa & Richard Blundell & Ian Preston, 2002. "From Earnings Inequality to Consumption Inequality," Economic Journal, Royal Economic Society, vol. 112(478), pages C52-C59, March.
  2. Deaton, A. & Paxson, C., 1993. "Intertemporal Choice and Inequality," Papers 168, Princeton, Woodrow Wilson School - Development Studies.
  3. Juhn, Chinhui & Murphy, Kevin M, 1997. "Wage Inequality and Family Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 72-97, January.
  4. Layard, Richard & Zabalza, Antoni, 1979. "Family Income Distribution: Explanation and Policy Evaluation," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S133-61, October.
  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. 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.
  7. Dean R. Hyslop, 2001. "Rising U.S. Earnings Inequality and Family Labor Supply: The Covariance Structure of Intrafamily Earnings," American Economic Review, American Economic Association, vol. 91(4), pages 755-777, September.
  8. Lehrer, Evelyn & Nerlove, Marc, 1984. "A Life-Cycle Analysis of Family Income Distribution," Economic Inquiry, Western Economic Association International, vol. 22(3), pages 360-74, July.
  9. James P. Smith, 2004. "The Distribution of Family Earnings," Labor and Demography 0408010, EconWPA.
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Cited by:

  1. El Lahga, AbdelRahmen & Moreau, Nicolas, 2007. "The Effects of Marriage on Couples’ Allocation of Time Between Market and Non-Market Hours," IZA Discussion Papers 2619, Institute for the Study of Labor (IZA).
  2. Kimhi, Ayal, 2011. "Can Female Non-Farm Labor Income Reduce Income Inequality? Evidence from Rural Southern Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114756, European Association of Agricultural Economists.
  3. Donni, Olivier & Matteazzi, Eleonora, 2010. "On the Importance of Household Production in Collective Models: Evidence from U.S. Data," IZA Discussion Papers 4944, Institute for the Study of Labor (IZA).
  4. Pencavel, John, 2006. "Earnings Inequality and Market Work in Husband-Wife Families," IZA Discussion Papers 2235, Institute for the Study of Labor (IZA).
  5. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2009. "Using The P90-P10 Index To Measure U.S. Inequality Trends With Current Population Survey Data: A View From Inside The Census Bureau Vaults," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 166-185, 03.
  6. Burkhauser, Richard V. & Feng, Shuaizhang & Jenkins, Stephen P., 2007. "Using the P90/P10 index to measure US inquality trends with current population survey data: a view from inside the Census Bureau vaults," ISER Working Paper Series 2007-14, Institute for Social and Economic Research.
  7. Kimhi, Ayal, 2008. "Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis," Discussion Papers 46293, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  8. Richard Breen & Signe Andersen, 2012. "Educational Assortative Mating and Income Inequality in Denmark," Demography, Springer, vol. 49(3), pages 867-887, August.
  9. Abdel-Rahmen El Lahga & Nicolas Moreau, 2007. "Would You Marry Me?: The Effects of Marriage on German Couples' Allocation of Time," SOEPpapers on Multidisciplinary Panel Data Research 12, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. Huang, Fung-Mey & Luh, Yir-Hueih & Huang, Fung-Yea, 2012. "Unemployment information and wives’ labor supply responses to husbands’ job loss in Taiwan," China Economic Review, Elsevier, vol. 23(4), pages 1176-1194.
  11. Ostrovsky, Yuri, 2012. "The correlation of spouses' permanent and transitory earnings and family earnings inequality in Canada," Labour Economics, Elsevier, vol. 19(5), pages 756-768.

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