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Gender Identity, Co-Working Spouses and Relative Income within Households

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  • Zinovyeva, Natalia

    (University of Warwick)

  • Tverdostup, Maryna

    (University of Innsbruck)

Abstract

Bertrand, Kamenica and Pan (2015) document that in the U.S. there is a sharp discontinuity to the right of 1/2 in the distribution of households according to the share of income earned by the wife, which they attribute to the existence of a gender identity norm postulating that a wife should earn less than her husband. We propose an alternative explanation for the existence of this discontinuity. We argue that any force that pushes some spouses towards equalizing their earnings, such as family businesses and co-working of spouses, creates a similar discontinuity. Using linked employer-employee data from Finland, we document the existence of a discontinuity of the same magnitude as in the U.S. and show that it can be fully explained by the earnings convergence of spouses who start working together. We also provide evidence suggesting that co-working spouses play an important role in explaining the discontinuity observed in the U.S.

Suggested Citation

  • Zinovyeva, Natalia & Tverdostup, Maryna, 2018. "Gender Identity, Co-Working Spouses and Relative Income within Households," IZA Discussion Papers 11757, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11757
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    Cited by:

    1. Maéva Doumbia & Marion Goussé, 2021. "Gender identity and relative income within households: Evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(4), pages 1667-1683, November.
    2. Maximilian Sprengholz & Anna Wieber & Elke Holst, 2019. "Gender Identity and Wives’ Labor Market Outcomes in West and East Germany between 1984 and 2016," SOEPpapers on Multidisciplinary Panel Data Research 1030, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Karin Hederos & Anders Stenberg, 2022. "Gender identity and relative income within households: evidence from Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 744-772, July.
    4. Cavapozzi, Danilo & Francesconi, Marco & Nicoletti, Cheti, 2021. "The impact of gender role norms on mothers’ labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 113-134.
    5. Gigi Foster & Leslie S. Stratton, 2021. "Does female breadwinning make partnerships less healthy or less stable?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 63-96, January.
    6. Estefanía Galván, 2022. "Gender Identity and Quality of Employment," Economica, London School of Economics and Political Science, vol. 89(354), pages 409-436, April.
    7. Popov, Alexander, 2022. "The division of spoils in a booming industry," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 341-369.
    8. Chiappori, Pierre-Andre & Fioro, Carlo & Galichon, Alfred & Verzillo, Stefano, 2022. "Assortative Matching on Income," Working Papers 2022-07, Joint Research Centre, European Commission.
    9. Daniel Kuehnle & Michael Oberfichtner & Kerstin Ostermann, 2021. "Revisiting gender identity and relative income within households: A cautionary tale on the potential pitfalls of density estimators," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(7), pages 1065-1073, November.
    10. Johannes Koeckeis, 2022. "Intra-Household Inequality and Tax Planning of Same-Sex Couples," GRAPE Working Papers 73, GRAPE Group for Research in Applied Economics.
    11. Francine D. Blau & Lawrence M. Kahn & Matthew Comey & Amanda Eng & Pamela Meyerhofer & Alexander Willén, 2020. "Culture and gender allocation of tasks: source country characteristics and the division of non-market work among US immigrants," Review of Economics of the Household, Springer, vol. 18(4), pages 907-958, December.
    12. Andrea Salazar-Díaz, 2022. "Ingreso relativo, identidad de género y brecha en el trabajo doméstico no remunerado: Evidencia para Colombia," Borradores de Economia 1191, Banco de la Republica de Colombia.
    13. André Grow & Jan Van Bavel, 2020. "The Gender Cliff in the Relative Contribution to the Household Income: Insights from Modelling Marriage Markets in 27 European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 36(4), pages 711-733, September.
    14. Anja Roth & Michaela Slotwinski, 2018. "Gender Norms and Income Misreporting within Households," CESifo Working Paper Series 7298, CESifo.
    15. Estefanía Galván & Cecilia García-Peñalosa, 2021. "Interactions amongst gender norms: Evidence from US couples," Documentos de Trabajo (working papers) 21-15, Instituto de Economia - IECON.

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    More about this item

    Keywords

    co-working spouses; gender identity norms; spouses' relative earnings;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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