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Behind Every Well Paid Married Man: The Impact of the Partner's Earning Opportunity

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  • John Douglas Skåtun

Abstract

This paper presents a theoretical bargaining model, which provides a new explanation for the married male wage premium. A worker can extract higher earnings from the firm when married. Whereas the married worker's wage is higher the higher is the income the spouse earns, should the bargaining break down, the worker's wage is negatively correlated with the spouse's current income.

Suggested Citation

  • John Douglas Skåtun, 2004. "Behind Every Well Paid Married Man: The Impact of the Partner's Earning Opportunity," Australian Economic Papers, Wiley Blackwell, vol. 43(1), pages 1-9, March.
    • Handle: RePEc:bla:ausecp:v:43:y:2004:i:1:p:1-9
    DOI: 10.1111/j.1467-8454.2004.00212.x
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    References listed on IDEAS

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    1. Reed, W Robert & Harford, Kathleen, 1989. "The Marriage Premium and Compensating Wage Differentials," Journal of Population Economics, Springer;European Society for Population Economics, vol. 2(4), pages 237-265.
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