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Marriage and Wages: A Test of the Specialization Hypothesis

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  • ELENA BARDASI
  • MARK TAYLOR

Abstract

We investigate the relationship between marriage and wages among men in Britain using panel data. Our econometric specifications allow for observed and unobserved heterogeneity and explicitly test the role of intra‐household specialization in explaining the observed relationship. Our estimates provide evidence for the existence of large selection effects into marriage based on observable and unobservable characteristics that are positively correlated with wages. After accounting for individual‐specific time‐invariant effects and a wide range of individual, household, job and employer related characteristics, we find a statistically significant premium that can be attributed to productivity differences largely resulting from intra‐household specialization.

Suggested Citation

  • Elena Bardasi & Mark Taylor, 2008. "Marriage and Wages: A Test of the Specialization Hypothesis," Economica, London School of Economics and Political Science, vol. 75(299), pages 569-591, August.
  • Handle: RePEc:bla:econom:v:75:y:2008:i:299:p:569-591
    DOI: 10.1111/j.1468-0335.2007.00630.x
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    Cited by:

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    2. Maya Staub & Thamar Melanie Heijstra, 2022. "“This Would Never be Possible if Not for Our Team Play”: An Analysis of Icelandic Doctorate Earnings from a Gender Perspective," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 565-580, September.
    3. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    4. Rachel Gordon & Carolyn Heinrich, 2009. "The potential of a couples approach to employment assistance: results of a nonexperimental evaluation," Review of Economics of the Household, Springer, vol. 7(2), pages 133-158, June.
    5. Juliet Elu & Gregory Price, 2013. "Ethnicity as a Barrier to Childhood and Adolescent Health Capital in Tanzania: Evidence from the Wage-Height Relationship," African Development Review, African Development Bank, vol. 25(1), pages 1-13.
    6. Longhi, Simonetta & Taylor, Mark P., 2011. "Explaining Differences in Job Search Outcomes Between Employed and Unemployed Job Seekers," IZA Discussion Papers 5860, Institute of Labor Economics (IZA).
    7. Antecol, Heather & Steinberger, Michael D., 2009. "Female Labor Supply Differences by Sexual Orientation: A Semi-Parametric Decomposition Approach," IZA Discussion Papers 4029, Institute of Labor Economics (IZA).
    8. Alison Booth & Jeff Frank, 2008. "Marriage, partnership and sexual orientation: a study of British university academics and administrators," Review of Economics of the Household, Springer, vol. 6(4), pages 409-422, December.
    9. Carole Bonnet & Bruno Jeandidier & Anne Solaz, 2018. "Wage Premium and Wage Penalty in Marriage versus Cohabitation," Revue d'économie politique, Dalloz, vol. 128(5), pages 745-775.
    10. Maryam Dilmaghani & Vurain Tabvuma, 2022. "Fragile Families in Quebec and the Rest of Canada: A Comparison of Parental Work-Life Balance Satisfaction," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 695-728, April.
    11. Roberto Bonilla & Francis Z. Kiraly & John Wildman, 2017. "Marriage Premium and Class," CESifo Working Paper Series 6550, CESifo.
    12. Zaharieva, Anna, 2013. "Social welfare and wage inequality in search equilibrium with personal contacts," Labour Economics, Elsevier, vol. 23(C), pages 107-121.
    13. Sergey Roshchin & Victor Rudakov, 2015. "Do Starting Salaries for Graduates Measure the Quality of Education? A Review of Studies by Russian and Foreign Authors," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 137-181.
    14. Nie, Guangyu, 2020. "Marriage squeeze, marriage age and the household savings rate in China," Journal of Development Economics, Elsevier, vol. 147(C).
    15. Arif Mamun, 2012. "Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 53-68, March.
    16. Simonetta Longhi & Mark Taylor, 2013. "Occupational Change and Mobility Among Employed and Unemployed Job Seekers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 71-100, February.
    17. R Simmons & D Berri, 2007. "Does it pay to specialize? The story from the Gridiron," Working Papers 591134, Lancaster University Management School, Economics Department.
    18. Åström, Johanna, 2009. "The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?," HUI Working Papers 34, HUI Research.
    19. Dacuycuy, Connie B., 2016. "Wages, Housework, and Attitudes in the Philippines," Discussion Papers DP 2016-36, Philippine Institute for Development Studies.
    20. Rob Simmons & David Berri, 2009. "Gains from Specialization and Free Agency: The Story from the Gridiron," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 81-98, February.
    21. Maryam Dilmaghani, 2019. "Sexual orientation and the ‘cohabitation gap’ in life satisfaction in Canada," Review of Economics of the Household, Springer, vol. 17(4), pages 1163-1189, December.
    22. Ashwin, Sarah & Isupova, Olga, 2014. "“Behind every great man…”: the male marriage wage premium examined qualitatively," LSE Research Online Documents on Economics 55689, London School of Economics and Political Science, LSE Library.
    23. Aistov, Andrey, 2013. "Marital wage gap," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 99-114.
    24. Sarah Bridges & Samuel Mann, 2019. "Sexual Orientation, Legal Partnerships and Wages in Britain," Work, Employment & Society, British Sociological Association, vol. 33(6), pages 1020-1038, December.
    25. Niklas Jakobsson & Andreas Kotsadam, 2016. "Does marriage affect men’s labor market outcomes? A European perspective," Review of Economics of the Household, Springer, vol. 14(2), pages 373-389, June.

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