Re-Visiting the Easterlin Hypothesis: Marriage in the U.S. 1968-2010
This study tests the effect of relative income – younger people's earning potential relative to their aspirations, as approximated by older families' income – on the proportions married, by sex, in the first fifteen years out of school. It finds that relative income has become a better measure to use, than relative cohort size, because of a disconnect that has developed between the two as a result of rising female labor force participation among older women that has inflated older families’ income faster than older men's earnings. The results are highly supportive of the Easterlin relative income hypothesis, finding a dominant negative effect of older family income that extends due to postponement effects even into groups 11-15 years out of school. But in addition it finds a strong but changing effect of the female wage: positive among women 0-5 years out of school, although slowly declining over time, but negative among the older women with a dominant positive time trend that has produced a positive effect in the last decade. The elasticity with respect to older family income suggests that it was responsible for 16% of the observed decline in the proportion of women 0-5 years out of school who were married, and 23% of the proportion for the men in the same group. There is in addition, however, a very strong negative time trend.
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- Simon Burgess & Carol Propper & Arnstein Aassve, 2002.
"The role of income in marriage and divorce transitions among young Americans,"
MPIDR Working Papers
WP-2002-022, Max Planck Institute for Demographic Research, Rostock, Germany.
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NBER Working Papers
14773, National Bureau of Economic Research, Inc.
- Tara Watson & Sara McLanahan, 2011. "Marriage Meets the Joneses: Relative Income, Identity, and Marital Status," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 482-517.
- Tara Watson & Sara McLanahan, 2009. "Marriage Meets the Joneses: Relative Income, Identity, and Marital Status," Working Papers 1141, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
- Tara Watson & Sara McLanahan, 2010. "Marriage Meets the Joneses: Relative Income, Identity, and Marital Status," Department of Economics Working Papers 2010-06, Department of Economics, Williams College.
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