The declining marital-status earnings differential

Educational Homogamy and Gender-Specific Earnings: Sweden, 1990–2009

Several studies have shown strong educational homogamy in most Western societies, although the trends over time differ across countries. In this article, we study the connection between educational assortative mating and gender-specific earnings in a sample containing the entire Swedish population born 1960–1974; we follow this sample from 1990 to 2009. Our empirical strategy exploits a longitudinal design, using distributed fixed-effects models capturing the impact of partner education on postmarital earnings, relating it to the income development before union formation. We find that being partnered with someone with more education (hypergamy) is associated with higher earnings, while partnering someone with less education (hypogamy) is associated with lower earnings. However, most of these differences in earnings emerge prior to the time of marriage, implying that the effect is explained by marital selection processes rather than by partner education affecting earnings. The exception is hypogamy among the highly educated, for which there are strong indications that in comparison with homogamy and hypergamy, earnings grow slower after union formation.

How do marital status, work effort, and wage rates interact?

How marital status interacts with men's earnings is an important analytic and policy issue, especially in the context of debates in the United States over programs that encourage healthy marriage. This paper generates new findings about the earnings-marriage relationship by estimating the linkages among flows into and out of marriage, work effort, and wage rates. The estimates are based on National Longitudinal Survey of Youth panel data, covering 23 years of marital and labor market outcomes, and control for unobserved heterogeneity. We estimate marriage effects on hours worked (our proxy for work effort) and on wage rates for all men and for black and low-skilled men separately. The estimates reveal that entering marriage raises hours worked quickly and substantially but that marriage's effect on wage rates takes place more slowly while men continue in marriage. Together; the stimulus to hours worked and wage rates generates an 18%-19% increase in earnings, with about one-third to one-half of the marriage earnings premium attributable to higher work effort. At the same time, higher wage rates and hours worked encourage men to marry and to stay married. Thus, being married and having high earnings reinforce each other over time.

Has the reciprocal relationship between employment and marriage changed for men? An analysis of the life histories of men born in the Netherlands between 1930 and 1970

The study presented here analyses the reciprocal relationship for men between employment career and union formation and examines whether this relationship changed across twentieth-century birth cohorts. Competing hypotheses about trends are described, using notions of role-specialization, spouse support, and uncertainty. The study is based on an investigation of the life histories of 2,795 men in the Netherlands who were born between the 1930s and the 1960s, and confirms earlier findings by showing that employment fosters marriage while marriage protects men from becoming unemployed. There is also a relationship between employment and cohabitation but it is weaker in both directions. However, the relationship between marriage or cohabitation and occupational mobility is less clear, suggesting that the economic benefits of marriage cannot be generalized to the occupational domain. Although it is commonly believed that the link for men between career and marriage has weakened over time, our comparison of birth cohorts shows that in fact this is not the case.

Gender differences in the marriage and cohabitation income premium

Using data from the 1979 National Longitudinal Survey of Youth, I identify causal effects of marriage and cohabitation on total family income. My goals are to compare men's and women's changes in financial status upon entering unions and to assess the relative contributions of adjustments in own income, income pooling, and changes in family size. Changes in own income that are due to intrahousehold specialization prove to be minor for both men and women relative to the effects of adding another adult's income to the family total. Women gain roughly 55% in needs-adjusted, total family income, regardless of whether they cohabit or marry, whereas men's needs-adjusted income levels remain unchanged when men make these same transitions.

The gender gap in the economic well-being of nonresident fathers and custodial mothers

Using a unique sample of couples with children, we estimate the gender gap in economic well-being after marital separation, something that previous studies of individuals who divorce have not been able to do. The income-to-needs levels of formerly married mothers are only 56% those of their former husbands. The postseparation gender gap is reduced if the wife was employed full-time and was an above-average earner before marital disruption. The gap is also relatively small among the least economically independent wives, those who were not employed before separation. For the latter group, the husband’s relatively low income tends to reduce the gender gap.