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Marriage wage premium in a search equilibrium

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  • Bonilla, Roberto
  • Kiraly, Francis

Abstract

In this paper we propose a new theoretical explanation for the existence of male marriage wage premium, based entirely on search frictions. We analyse the interaction of frictional labour and marriage markets. We present and explore a search equilibrium characterised by wage dispersion where only high earning men get married. We also examine other equilibria where the marriage market may or may not influence labour market outcomes.

Suggested Citation

  • Bonilla, Roberto & Kiraly, Francis, 2013. "Marriage wage premium in a search equilibrium," Labour Economics, Elsevier, vol. 24(C), pages 107-115.
    • Handle: RePEc:eee:labeco:v:24:y:2013:i:c:p:107-115
    DOI: 10.1016/j.labeco.2013.05.004
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    1. David S. Loughran & Julie M. Zissimopoulos, 2009. "Why Wait?: The Effect of Marriage and Childbearing on the Wages of Men and Women," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
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    8. Donna K. Ginther & Madeline Zavodny, 2001. "Is the male marriage premium due to selection? The effect of shotgun weddings on the return to marriage," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(2), pages 313-328.
    9. Francine D. Blau & Lawrence M. Kahn & Jane Waldfogel, 2000. "Understanding Young Women's Marriage Decisions: The Role of Labor and Marriage Market Conditions," ILR Review, Cornell University, ILR School, vol. 53(4), pages 624-647, July.
    10. Burdett, Kenneth & Judd, Kenneth L, 1983. "Equilibrium Price Dispersion," Econometrica, Econometric Society, vol. 51(4), pages 955-969, July.
    11. Blackburn, McKinley & Korenman, Sanders, 1994. "The Declining Marital-Status Earnings Differential," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(3), pages 247-270, July.
    12. Nicolas Jacquemet & Jean-Marc Robin, 2013. "Assortative matching and search with labor supply and home production," CeMMAP working papers 07/13, Institute for Fiscal Studies.
    13. Jeffrey S. Gray, 1997. "The Fall in Men's Return to Marriage: Declining Productivity Effects or Changing Selection?," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 481-504.
    14. Roberto Bonilla & Alberto Trejos, 2015. "Marriage, Employment Participation and Home Production in Search Equilibrium," Monetaria, Centro de Estudios Monetarios Latinoamericanos, CEMLA, vol. 0(1), pages 1-23, january-j.
    15. Chun, Hyunbae & Lee, Injae, 2001. "Why Do Married Men Earn More: Productivity or Marriage Selection?," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 307-319, April.
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    Cited by:

    1. Roberto Bonilla & Francis Kiraly & John Wildman, 2019. "Beauty Premium And Marriage Premium In Search Equilibrium: Theory And Empirical Test," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 851-877, May.
    2. Roberto Bonilla & Alberto Trejos, 2021. "Marriage and employment participation with wage bargaining in search equilibrium," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 517-533, September.
    3. Roberto Bonilla & Francis Kiraly & John Wildman, 2022. "Marriage premium with productivity heterogeneity," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 317-328, January.
    4. Roberto Bonilla & Alberto Trejos, 2015. "Marriage, Employment Participation and Home Production in Search Equilibrium," Monetaria, Centro de Estudios Monetarios Latinoamericanos, CEMLA, vol. 0(1), pages 1-23, january-j.
    5. Roberto Bonilla & Francis Kiraly, 2024. "Male investment in schooling with frictional labour and marriage markets," Review of Economics of the Household, Springer, vol. 22(2), pages 359-385, June.
    6. Bonilla, Roberto & Malo, Miguel Á. & Pinto, Fernando, 2022. "Marriage wage premium with contract type heterogeneity," Labour Economics, Elsevier, vol. 78(C).
    7. Keisuke Kawata & Mizuki Komura, 2015. "The Gender Division of Labor: A Joint Marriage and Job Search Model," IDEC DP2 Series 5-1, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    8. Roberto Bonilla & Francis Z. Kiraly & John Wildman, 2017. "Marriage Premium and Class," CESifo Working Paper Series 6550, CESifo.
    9. Roberto Bonilla & Francis Kiraly & Miguel Ángel Malo & Fernando Pinto Hernández, 2024. "Marriage, Divorce and Reservation Wages," CESifo Working Paper Series 11123, CESifo.
    10. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    11. Haomin Wang, 2019. "Intra-Household Risk Sharing and Job Search over the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 165-182, October.
    12. Thierry Kamionka, 2021. "Sporting Activity, Employment Status and Wage," Post-Print hal-03294084, HAL.
    13. Roberto Bonilla & Francis Kiraly, 2020. "Constrained Fixed Sample Search," Economics Bulletin, AccessEcon, vol. 40(2), pages 1645-1650.

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