IDEAS home Printed from https://ideas.repec.org/p/sip/dpaper/04-036.html
   My bibliography  Save this paper

A Life Cycle Perspective on Changes in Earnings Inequality Among Married Men and Women

Author

Listed:
  • John Pencavel

    (Department of Economics, Stanford University)

Abstract

The connection between the growth in hourly earnings inequality of individuals and changes in family earnings involves a number of issues: the movements in the employment of different family members, the association between changes in the earnings of the husband and those of the wife, and patterns of assortative mating. This paper offers a decomposition of the logarithm of the coefficient of variation in family earnings that distinguishes these issues. Unlike most of the previous research, this paper organizes the data on the dispersion of family earnings not simply over time but also by age. We focus on the impact on family earnings inequality of the growth in the relative employment and relative earnings of wives. Such growth has partly offset the effects on family earnings inequality of the increase in husbands’ earnings inequality.

Suggested Citation

  • John Pencavel, 2005. "A Life Cycle Perspective on Changes in Earnings Inequality Among Married Men and Women," Discussion Papers 04-036, Stanford Institute for Economic Policy Research.
  • Handle: RePEc:sip:dpaper:04-036
    as

    Download full text from publisher

    File URL: http://www-siepr.stanford.edu/repec/sip/04-036.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Layard, Richard & Zabalza, Antoni, 1979. "Family Income Distribution: Explanation and Policy Evaluation," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 133-161, October.
    2. Lehrer, Evelyn & Nerlove, Marc, 1981. "The Impact of Female Work on Family Income Distribution in the United States: Black-White Differentials," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(4), pages 423-431, December.
    3. Smith, James P, 1979. "The Distribution of Family Earnings," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 163-192, October.
    4. Dean R. Hyslop, 2001. "Rising U.S. Earnings Inequality and Family Labor Supply: The Covariance Structure of Intrafamily Earnings," American Economic Review, American Economic Association, vol. 91(4), pages 755-777, September.
    5. Orazio Attanasio & Gabriella Berloffa & Richard Blundell & Ian Preston, 2002. "From Earnings Inequality to Consumption Inequality," Economic Journal, Royal Economic Society, vol. 112(478), pages 52-59, March.
    6. Deaton, Angus & Paxson, Christina, 1994. "Intertemporal Choice and Inequality," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 437-467, June.
    7. Juhn, Chinhui & Murphy, Kevin M, 1997. "Wage Inequality and Family Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 72-97, January.
    8. Lehrer, Evelyn & Nerlove, Marc, 1984. "A Life-Cycle Analysis of Family Income Distribution," Economic Inquiry, Western Economic Association International, vol. 22(3), pages 360-374, July.
    9. Maria Cancian & Deborah Reed, 1998. "Assessing The Effects Of Wives' Earnings On Family Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 73-79, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hryshko, Dmytro & Juhn, Chinhui & McCue, Kristin, 2017. "Trends in earnings inequality and earnings instability among U.S. couples: How important is assortative matching?," Labour Economics, Elsevier, vol. 48(C), pages 168-182.
    2. Kimhi, Ayal, 2011. "Can Female Non-Farm Labor Income Reduce Income Inequality? Evidence from Rural Southern Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114756, European Association of Agricultural Economists.
    3. Richard Breen & Signe Andersen, 2012. "Educational Assortative Mating and Income Inequality in Denmark," Demography, Springer;Population Association of America (PAA), vol. 49(3), pages 867-887, August.
    4. El Lahga, AbdelRahmen & Moreau, Nicolas, 2007. "Would you Marry me? The Effects of Marriage on German Couples? Allocation of Time," ZEW Discussion Papers 07-024, ZEW - Leibniz Centre for European Economic Research.
    5. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2009. "Using The P90/P10 Index To Measure U.S. Inequality Trends With Current Population Survey Data: A View From Inside The Census Bureau Vaults," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 166-185, March.
    6. Huang, Fung-Mey & Luh, Yir-Hueih & Huang, Fung-Yea, 2012. "Unemployment information and wives’ labor supply responses to husbands’ job loss in Taiwan," China Economic Review, Elsevier, vol. 23(4), pages 1176-1194.
    7. Olivier Donni & Eleonora Matteazzi, 2012. "On the Importance of Household Production in Collective Models: Evidence from U.S. Data," Annals of Economics and Statistics, GENES, issue 105-106, pages 99-125.
    8. Shao-Hsun Keng & Peter F. Orazem, 2019. "Performance pay, the marriage market and rising income inequality in Taiwan," Review of Economics of the Household, Springer, vol. 17(3), pages 969-992, September.
    9. Ostrovsky, Yuri, 2012. "The correlation of spouses' permanent and transitory earnings and family earnings inequality in Canada," Labour Economics, Elsevier, vol. 19(5), pages 756-768.
    10. Milan Bouchet-Valat, 2017. "Does women’s employment growth increase wage inequalities between couples? The case of France between 1982 and 2014," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Études Économiques (INSEE), issue 493, pages 67-85.
    11. Pencavel, John, 2006. "Earnings Inequality and Market Work in Husband-Wife Families," IZA Discussion Papers 2235, Institute of Labor Economics (IZA).
    12. Ayal Kimhi, 2009. "Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 18(3-4), pages 34-48, September.
    13. Chimere O. Iheonu & Ozoemena S. Nwodo & Uchechi S. Anaduaka & Ugochinyere Ekpo, 2020. "Inequality and Female Labour Force Participation in West Africa," Working Papers 20/076, European Xtramile Centre of African Studies (EXCAS).
    14. El Lahga, Abdel Rahmen & Moreau, Nicolas, 2007. "The Effects of Marriage on Couples’ Allocation of Time Between Market and Non-Market Hours," IZA Discussion Papers 2619, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Pencavel, 2007. "Earnings Inequality, Labour Supply And Schooling In Husband–Wife Families," Bulletin of Economic Research, Wiley Blackwell, vol. 59(2), pages 83-124, April.
    2. Raaum Oddbjørn & Bratsberg Bernt & Røed Knut & Österbacka Eva & Eriksson Tor & Jäntti Markus & Naylor Robin A, 2008. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-49, January.
    3. Hryshko, Dmytro & Juhn, Chinhui & McCue, Kristin, 2017. "Trends in earnings inequality and earnings instability among U.S. couples: How important is assortative matching?," Labour Economics, Elsevier, vol. 48(C), pages 168-182.
    4. Nico Pestel, 2017. "Marital Sorting, Inequality and the Role of Female Labour Supply: Evidence from East and West Germany," Economica, London School of Economics and Political Science, vol. 84(333), pages 104-127, January.
    5. Donal O'Neill & Olive Sweetman & Brian Nolan & Tim Callan, 1998. "Female Labour supply and Income Inequality in Ireland," Economics, Finance and Accounting Department Working Paper Series n790698, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    6. THELOUDIS Alexandros, 2017. "Consumption Inequality across Heterogeneous Families," LISER Working Paper Series 2017-18, LISER.
    7. Heathcote, Jonathan & Storesletten, Kjetil & Violante, Giovanni L, 2004. "The Cross-Sectional Implications of Rising Wage Inequality in the United States," CEPR Discussion Papers 4296, C.E.P.R. Discussion Papers.
    8. Pencavel, John, 2006. "Earnings Inequality and Market Work in Husband-Wife Families," IZA Discussion Papers 2235, Institute of Labor Economics (IZA).
    9. Richard Blundell & Luigi Pistaferri & Itay Saporta-Eksten, 2016. "Consumption Inequality and Family Labor Supply," American Economic Review, American Economic Association, vol. 106(2), pages 387-435, February.
    10. Younghwan Song, 2007. "The working spouse penalty/premium and married women’s labor supply," Review of Economics of the Household, Springer, vol. 5(3), pages 279-304, September.
    11. Gosta Esping-Andersen, 2008. "Childhood investments and skill formation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(1), pages 19-44, February.
    12. France Caillavet, 1998. "La production domestique des femmes réduit l'inégalité des revenus familiaux," Économie et Statistique, Programme National Persée, vol. 311(1), pages 75-89.
    13. Huggett, Mark & Ventura, Gustavo & Yaron, Amir, 2006. "Human capital and earnings distribution dynamics," Journal of Monetary Economics, Elsevier, vol. 53(2), pages 265-290, March.
    14. Mary C. Daly & Robert G. Valletta, 2000. "Inequality and poverty in the United States: the effects of changing family behavior and rising wage dispersion," Working Paper Series 2000-06, Federal Reserve Bank of San Francisco.
    15. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2010. "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 15-51, January.
    16. Casey B. Mulligan & Yona Rubinstein, 2004. "Household vs. Personal Accounts of the U.S. Labor Market, 1965-2000," NBER Working Papers 10320, National Bureau of Economic Research, Inc.
    17. Nico Pestel, 2014. "Beyond Inequality Accounting: Marital Sorting and Couple Labor Supply," SOEPpapers on Multidisciplinary Panel Data Research 698, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Sotomayor, Orlando J., 2009. "Changes in the Distribution of Household Income in Brazil: The Role of Male and Female Earnings," World Development, Elsevier, vol. 37(10), pages 1706-1715, October.
    19. Theloudis, Alexandros, 2011. "From income and consumption inequality to economic welfare inequality: the role of labor supply," MPRA Paper 37517, University Library of Munich, Germany.
    20. Athreya, Kartik & Tam, Xuan S. & Young, Eric R., 2009. "Unsecured credit markets are not insurance markets," Journal of Monetary Economics, Elsevier, vol. 56(1), pages 83-103, January.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sip:dpaper:04-036. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Shor) The email address of this maintainer does not seem to be valid anymore. Please ask Anne Shor to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/cestaus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.