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The Relationship Between the Effects of a Wife’s Education on her Husband’s Earnings and her Labor Participation: Japan in the period 2000 -2003

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  • Yamamura, Eiji
  • Mano, Yukichi

Abstract

In this paper, we explore the relationship between the influence of wives’ human capital on their husbands’ earnings and their labor participation using individual level data for Japan in the period 2000–2003. We found that a wife’s human capital has a positive effect on her husband’s earnings regardless of her work status when the entire sample is used. Furthermore, we focused on couples with an age difference exceeding five years to remove the assortative mating effect. By using this subsample, the positive effect of a wife’s education is observed when a wife is a non-worker, that is she does not work outside the home, but disappears in those who are workers, that is they work outside the home. This suggests that a wife’s labor participation drastically reduces the positive effect of her human capital on her husband’s earnings after controlling for the assortative mating effect. It follows from this that an educated housewife improves her husband’s productivity, consequently increasing his earnings, whereas a working wife appears to not have enough time to do so. These findings are consistent with implications drawn from the situation in the United States (Jepsen 2005).

Suggested Citation

  • Yamamura, Eiji & Mano, Yukichi, 2010. "The Relationship Between the Effects of a Wife’s Education on her Husband’s Earnings and her Labor Participation: Japan in the period 2000 -2003," MPRA Paper 22439, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:22439
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    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    2. Chong Huang & Hongbin Li & Pak Wai Liu & Junsen Zhang, 2009. "Why Does Spousal Education Matter for Earnings? Assortative Mating and Cross-Productivity," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 633-652, October.
    3. Tiefenthaler, Jill, 1997. "The Productivity Gains of Marriage: Effects of Spousal Education on Own Productivity across Market Sectors in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 633-650, April.
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    5. Theodore W. Schultz, 1974. "Economics of the Family: Marriage, Children, and Human Capital," NBER Books, National Bureau of Economic Research, Inc, number schu74-1, June.
    6. Eng Seng Loh, 1996. "Productivity Differences and the Marriage Wage Premium for White Males," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 566-589.
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    8. Shahina Amin & Lisa K. Jepsen, 2005. "The Impact of a Wife's Education on Her Husband's Earnings in Malaysia," Journal of Economic Insight (formerly the Journal of Economics (MVEA)), Missouri Valley Economic Association, vol. 31(2), pages 1-18.
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    More about this item

    Keywords

    Wife’s education; husband’s earnings; human capital;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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