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Job Turnover, Wage Rates, and Marital Stability: How Are They Related?

Author

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  • Ahituv, Avner

    () (University of Haifa)

  • Lerman, Robert I.

    () (Urban Institute)

Abstract

This study examines the interplay between job stability, wage rates, and marital instability. We use a Dynamic Selection Control model in which young men make sequential choices about work and family. Our empirical estimates derived from the model account for self-selection, simultaneity and unobserved heterogeneity. The results capture how job stability affects earnings, how both affect marital status, and how marital status affects earnings and job stability. The study reveals robust evidence that job instability lowers wages and the likelihood of getting and remaining married. At the same time, marriage raises wages and job stability. To project the sequential effects linking job stability, marital status, and earnings, we simulate the impacts of shocks that raise preferences for marriage and that increase education. Feedback effects cause the simulated wage gains from marriage to cumulate over time, indicating that long-run marriage wage premiums exceed conventional short-run estimates.

Suggested Citation

  • Ahituv, Avner & Lerman, Robert I., 2005. "Job Turnover, Wage Rates, and Marital Stability: How Are They Related?," IZA Discussion Papers 1470, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1470
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lia Pacelli & Silvia Pasqua & Claudia Villosio, 2007. "What Does the Stork Bring to Women’s Working Career?," LABORatorio R. Revelli Working Papers Series 58, LABORatorio R. Revelli, Centre for Employment Studies.
    2. repec:kap:reveho:v:15:y:2017:i:3:d:10.1007_s11150-015-9300-2 is not listed on IDEAS
    3. Lundberg, Shelly, 2005. "Men and islands: Dealing with the family in empirical labor economics," Labour Economics, Elsevier, vol. 12(4), pages 591-612, August.
    4. Michael Svarer, 2011. "Crime and partnerships," Review of Economics of the Household, Springer, vol. 9(3), pages 307-325, September.
    5. repec:pri:crcwel:wp09-03-ff is not listed on IDEAS
    6. Avner Ahituv & Robert Lerman, 2007. "How do marital status, work effort, and wage rates interact?," Demography, Springer;Population Association of America (PAA), vol. 44(3), pages 623-647, August.
    7. Anna Baranowska-Rataj & Anna Matysiak, 2014. "Does the European country-specific context alter the fatherhood premium?," Working Papers 74, Institute of Statistics and Demography, Warsaw School of Economics.
    8. Laura Turner & Aloysius Siow & Gueorgui Kambourov, 2014. "Relationship Skills in the Labor and Marriage Markets," 2014 Meeting Papers 155, Society for Economic Dynamics.
    9. Marcén, Miriam & Morales, Marina, 2017. "Remain single or live together: Does culture matter?," MPRA Paper 77623, University Library of Munich, Germany.

    More about this item

    Keywords

    wage rates; marriage and marital dissolution; job turnover; panel data;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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