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- Title
The Marriage Earnings Premium as a Distributed Fixed Effect.
- Authors
Dougherty, Christopher
- Abstract
Wage equations using cross-sectional data typically find an earnings premium in excess of 10 percent for married men. One leading hypothesis for the premium is that marriage facilitates specialization that enables married men to become more productive than single men. Another is that the premiums attributable to an unobserved fixed effect, married men possessing qualities that are valued in the labor market as well as the marriage market. This paper suggests that the premium is attributable to an unobserved time distributed fixed effect that emerges and grows with the approach of marriage and continues to grow for some years after marriage. A similar distributed fixed effect is found in the case of women, but it is smaller and declines after a few years of marriage. The results appear to cast doubt on the specialization hypothesis.
- Subjects
HUSBANDS; EMPLOYMENT of married people; INCOME gap; SOCIOECONOMICS; EXPERTISE; PAY equity; LABOR market; LABOR supply; EMPLOYMENT
- Publication
Journal of Human Resources, 2006, Vol 41, Issue 2, p433
- ISSN
0022-166X
- Publication type
Article
- DOI
10.3368/jhr.XLI.2.433