IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v43y2022i1d10.1007_s10834-021-09766-4.html
   My bibliography  Save this article

Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors

Author

Listed:
  • Derek T. Tharp

    (University of Southern Maine)

  • Elizabeth J. Parks-Stamm

    (University of Southern Maine)

  • Meghaan Lurtz

    (Kansas State University)

  • Michael Kitces

    (Kitces.com)

Abstract

This study examined marital and parental income premiums among financial advisors. Financial advisors provide an interesting context for exploring such premiums, as financial advising is a historically male-dominated profession that has been found to exhibit large unadjusted gender pay gaps. Using a large, cross-sectional sample of financial advisors recruited via a professional continuing education website (n = 459), this study investigates whether gender differences exist among financial advisors with respect to the marriage premium, the parenthood premium, the parental leave effect, and the stay-at-home spouse premium. This study examined premiums both with and without potentially endogenous human capital covariates. Without including potentially endogenous covariates, a marriage premium was observed among men but not women, a parenthood premium was observed among women and a penalty observed among men, a parental leave penalty was observed among neither men nor women, and a stay-at-home spouse premium was observed among men but not women. When potentially endogenous covariates were included, a marriage penalty was observed among women but not men, a parenthood premium was observed among women while a parenthood penalty was observed among men, a parental leave premium was observed among men but not women, and a stay-at-home spouse premium was observed among men while a stay-at-home spouse penalty was observed among women. Exploratory Blinder-Oaxaca decomposition analyses revealed sizeable unadjusted income gaps by gender (15.0%), marriage (40.2%), parenthood (7.4%), parental leave (11.6%), and spousal employment (41.0%).

Suggested Citation

  • Derek T. Tharp & Elizabeth J. Parks-Stamm & Meghaan Lurtz & Michael Kitces, 2022. "Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 15-35, March.
    • Handle: RePEc:kap:jfamec:v:43:y:2022:i:1:d:10.1007_s10834-021-09766-4
    DOI: 10.1007/s10834-021-09766-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-021-09766-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-021-09766-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    2. José De Gregorio & Jong–Wha Lee, 2002. "Education and Income Inequality: New Evidence From Cross‐Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
    3. 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).
    4. 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.
    5. Averkamp, Dorothée & Bredemeier, Christian & Juessen, Falko, 2020. "Decomposing Gender Wage Gaps: A Family Economics Perspective," IZA Discussion Papers 13601, Institute of Labor Economics (IZA).
    6. Mette Ejrnæs & Astrid Kunze, 2013. "Work and Wage Dynamics around Childbirth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 856-877, July.
    7. Audrey Light, 2004. "Gender differences in the marriage and cohabitation income premium," Demography, Springer;Population Association of America (PAA), vol. 41(2), pages 263-284, May.
    8. Libertad González Luna & Lidia Farré, 2017. "The effects of paternity leave on fertility and labor market outcomes," Economics Working Papers 1572, Department of Economics and Business, Universitat Pompeu Fabra.
    9. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    10. Marisa Young & Jean Wallace, 2009. "Family Responsibilities, Productivity, and Earnings: A Study of Gender Differences Among Canadian Lawyers," Journal of Family and Economic Issues, Springer, vol. 30(3), pages 305-319, September.
    11. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    12. Charlotta Magnusson & Magnus Nermo, 2017. "Gender, Parenthood and Wage Differences: The Importance of Time-Consuming Job Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(2), pages 797-816, March.
    13. Kate Antonovics & Robert Town, 2004. "Are All the Good Men Married? Uncovering the Sources of the Marital Wage Premium," American Economic Review, American Economic Association, vol. 94(2), pages 317-321, May.
    14. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    15. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    16. de Linde Leonard, Megan & Stanley, T.D., 2015. "Married with children: What remains when observable biases are removed from the reported male marriage wage premium," Labour Economics, Elsevier, vol. 33(C), pages 72-80.
    17. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    18. Nabanita Datta Gupta & Ronald L. Oaxaca & Nina Smith, 2006. "Swimming Upstream, Floating Downstream: Comparing Women's Relative Wage Progress in the United States and Denmark," ILR Review, Cornell University, ILR School, vol. 59(2), pages 243-266, January.
    19. Görlitz, Katja & Tamm, Marcus, 2015. "Parenthood and Risk Preferences," Ruhr Economic Papers 552, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    20. Christian Nsiah & Ron DeBeaumont & Annette Ryerson, 2013. "Motherhood and Earnings: Wage Variability by Major Occupational Category and Earnings Level," Journal of Family and Economic Issues, Springer, vol. 34(2), pages 224-234, June.
    21. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
    22. Sheree Gibb & David Fergusson & L. Horwood & Joseph Boden, 2014. "The Effects of Parenthood on Workforce Participation and Income for Men and Women," Journal of Family and Economic Issues, Springer, vol. 35(1), pages 14-26, March.
    23. William C. Horrace & Ronald L. Oaxaca, 2001. "Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem," ILR Review, Cornell University, ILR School, vol. 54(3), pages 611-618, April.
    24. Elisa Rose Birch & Paul W. Miller, 2006. "How Does Marriage Affect the Wages of Men in Australia?," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 150-164, June.
    25. Meghaan R. Lurtz & Derek T. Tharp & Katherine S. Mielitz & Michael Kitces & D. Allen Ammerman, 2020. "Decomposing the Gender Divorce Gap Among Personal Financial Planners," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 19-36, March.
    26. Alexandra Killewald & Ian Lundberg, 2017. "New Evidence Against a Causal Marriage Wage Premium," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 1007-1028, June.
    27. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
    28. Derek T. Tharp & Elizabeth J. Parks-Stamm, 2021. "Gender Differences in the Intended Use of Parental Leave: Implications for Human Capital Development," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 47-60, March.
    29. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    30. Leslie S. Stratton, 2002. "Examining the Wage Differential for Married and Cohabiting Men," Economic Inquiry, Western Economic Association International, vol. 40(2), pages 199-212, April.
    31. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    32. Rebecca Glauber, 2018. "Trends in the Motherhood Wage Penalty and Fatherhood Wage Premium for Low, Middle, and High Earners," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1663-1680, October.
    33. Claudia Goldin & Lawrence F. Katz, 2012. "The Most Egalitarian of All Professions: Pharmacy and the Evolution of a Family-Friendly Occupation," NBER Working Papers 18410, National Bureau of Economic Research, Inc.
    34. Mari Rege & Ingeborg Solli, 2013. "The Impact of Paternity Leave on Fathers’ Future Earnings," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2255-2277, December.
    35. Christopher Dougherty, 2006. "The Marriage Earnings Premium as a Distributed Fixed Effect," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    36. Maria Marshall & Anna Flaig, 2014. "Marriage, Children, and Self-Employment Earnings: An Analysis of Self-Employed Women in the US," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 313-322, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Astrid Kunze, 2020. "The effect of children on male earnings and inequality," Review of Economics of the Household, Springer, vol. 18(3), pages 683-710, September.
    2. Tharp, Derek & Parks-Stamm, Elizabeth & Lurtz, Meghaan & Kitces, Michael, 2020. "Exploring Gender Differences in Marriage and Parental Income Premiums among Financial Advisors," SocArXiv 7k95t, Center for Open Science.
    3. Meghaan R. Lurtz & Derek T. Tharp & Katherine S. Mielitz & Michael Kitces & D. Allen Ammerman, 2020. "Decomposing the Gender Divorce Gap Among Personal Financial Planners," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 19-36, March.
    4. Benjamin Artz, 2024. "Are Mothers More Likely Than Fathers to Lose Their jobs?," Journal of Family and Economic Issues, Springer, vol. 45(3), pages 528-545, September.
    5. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    6. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    7. Kunze, Astrid, 2014. "The family gap in career progression," Discussion Paper Series in Economics 29/2014, Norwegian School of Economics, Department of Economics.
    8. Ma, Xinxin, 2022. "Parenthood and the gender wage gap in urban China," Journal of Asian Economics, Elsevier, vol. 80(C).
    9. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    10. Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute of Labor Economics (IZA).
    11. Owen O’Donnell & Eddy van Doorslaer & Adam Wagstaff, 2012. "Decomposition of Inequalities in Health and Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 17, Edward Elgar Publishing.
    12. Rick Glaubitz & Astrid Harnack-Eber & Miriam Wetter, 2022. "The Gender Gap in Lifetime Earnings: The Role of Parenthood," Discussion Papers of DIW Berlin 2001, DIW Berlin, German Institute for Economic Research.
    13. Paweenawat, Sasiwimon Warunsiri & Liao, Lusi, 2022. "Parenthood penalty and gender wage gap: Recent evidence from Thailand," Journal of Asian Economics, Elsevier, vol. 78(C).
    14. Daniel Erdsiek, 2016. "Overqualification of graduates: assessing the role of family background [Überqualifikation von Hochschulabsolventen: Welche Rolle spielt der familiäre Hintergrund?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 253-268, November.
    15. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.
    16. Martina Querejeta Rabosto & Marisa Bucheli, 2021. "Motherhood Penalties: the Effect of Childbirth on Women's Employment Dynamics in a Developing Country," Documentos de Trabajo (working papers) 0121, Department of Economics - dECON.
    17. Ronald Bachmann & Mathias Sinning, 2016. "Decomposing the Ins and Outs of Cyclical Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 853-876, December.
    18. ChangHwan Kim, 2010. "Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method," Sociological Methods & Research, , vol. 38(4), pages 619-651, May.
    19. Fossen, Frank M., 2019. "Entrepreneurship over the Business Cycle in the United States: A Decomposition," IZA Discussion Papers 12499, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:43:y:2022:i:1:d:10.1007_s10834-021-09766-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.