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

Author

Listed:
  • 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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    References listed on IDEAS

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    7. Jarkko Harju & Tuomas Matikka, 2016. "Business owners and income-shifting: evidence from Finland," Small Business Economics, Springer, vol. 46(1), pages 115-136, January.
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    9. Hederos Eriksson, Karin & Stenberg, Anders, 2015. "Gender Identity and Relative Income within Households: Evidence from Sweden," IZA Discussion Papers 9533, Institute of Labor Economics (IZA).
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    11. Misty Heggeness & Marta Murray-Close, 2019. "Manning Up and Womaning Down: How Husbands and Wives Report Earnings When She Earns More," Opportunity and Inclusive Growth Institute Working Papers 28, Federal Reserve Bank of Minneapolis.
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    Cited by:

    1. Hederos Eriksson, Karin & Stenberg, Anders, 2015. "Gender Identity and Relative Income within Households: Evidence from Sweden," IZA Discussion Papers 9533, Institute of Labor Economics (IZA).
    2. 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.
    3. Gigi Foster & Leslie S. Stratton, 0. "Does female breadwinning make partnerships less healthy or less stable?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 0, pages 1-34.
    4. Francine D. Blau & Lawrence 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," CESifo Working Paper Series 8195, CESifo.
    5. 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.
    6. Anja Roth & Michaela Slotwinski, 2018. "Gender Norms and Income Misreporting within Households," CESifo Working Paper Series 7298, CESifo.
    7. 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.
    8. Anja Roth & Michaela Slotwinski, 2018. "Gender Norms and Income Misreporting within Households," CESifo Working Paper Series 7298, CESifo.

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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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