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On the Evidence of a Working Spouse Penalty in the Managerial Labor Market

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  • Julie L. Hotchkiss
  • Robert E. Moore

Abstract

This analysis of March 1993 Current Population Survey data suggests that managers with working wives earn lower wages than their counterparts with non-working wives. The labor supply decisions of managers' wives appear to be unaffected by (that is, “exogenous†with respect to) their husbands' wages. In contrast, there is evidence that the labor supply decisions of non-managers' wives are affected by their husbands' wages, and when the analysis takes account of that endogeneity, it is found that non-managers do not suffer a working spouse penalty. The analysis also highlights some important issues related to the use of instrumental variables.

Suggested Citation

  • Julie L. Hotchkiss & Robert E. Moore, 1999. "On the Evidence of a Working Spouse Penalty in the Managerial Labor Market," ILR Review, Cornell University, ILR School, vol. 52(3), pages 410-423, April.
    • Handle: RePEc:sae:ilrrev:v:52:y:1999:i:3:p:410-423
    DOI: 10.1177/001979399905200303
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    References listed on IDEAS

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    1. Hotchkiss, Julie L, 1991. "The Definition of Part-Time Employment: A Switching Regression Model with Unknown Sample Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 899-917, November.
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    3. Kenneth Bollen & David Guilkey & Thomas Mroz, 1995. "Binary outcomes and endogenous explanatory variables: Tests and solutions with an application to the demand for contraceptive use in tunisia," Demography, Springer;Population Association of America (PAA), vol. 32(1), pages 111-131, February.
    4. Altonji, Joseph G & Paxson, Christina H, 1988. "Labor Supply Preferences, Hours Constraints, and Hours-Wage Trade-Offs," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 254-276, April.
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    6. Jacobsen, Joyce P & Rayack, Wendy L, 1996. "Do Men Whose Wives Work Really Earn Less?," American Economic Review, American Economic Association, vol. 86(2), pages 268-273, May.
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    Cited by:

    1. Colleen Flaherty Manchester & Lisa M. Leslie & Patricia C. Dahm, 2019. "Bringing Home the Bacon: The Relationships among Breadwinner Role, Performance, and Pay," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(1), pages 46-85, January.
    2. Julie L. Hotchkiss, 2014. "Adjusted Employment-to-Population Ratio as an Indicator of Labor Market Strength," FRB Atlanta Working Paper 2014-8, Federal Reserve Bank of Atlanta.
    3. Nabanita Datta Gupta & Nina Smith & Leslie S. Stratton, 2007. "Is Marriage Poisonous? Are Relationships Taxing? An Analysis of the Male Marital Wage Differential in Denmark," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 412-433, October.
    4. Cornaglia, Francesca & Feldman, Naomi E., 2011. "Productivity, Wages, and Marriage: The Case of Major League Baseball," IZA Discussion Papers 5695, Institute of Labor Economics (IZA).
    5. Younghwan Song, 2007. "The working spouse penalty/premium and married women’s labor supply," Review of Economics of the Household, Springer, vol. 5(3), pages 279-304, September.
    6. Olga Nottmeyer, 2010. "Does Intermarriage Pay Off?: A Panel Data Analysis," Discussion Papers of DIW Berlin 1044, DIW Berlin, German Institute for Economic Research.
    7. Madeline Zavodny, 2008. "Is there a ‘marriage premium’ for gay men?," Review of Economics of the Household, Springer, vol. 6(4), pages 369-389, December.
    8. Francesca Cornaglia & E. Feldman, 2017. "Productivity, Wages, and Marriage: A Case Study in Professional Athletics," Working Papers 818, Queen Mary University of London, School of Economics and Finance.
    9. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    10. Huamin Chai & Rui Fu & Peter C. Coyte, 2021. "Does Unpaid Caregiving Erode Working Hours Among Middle-Aged Chinese Adults?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 977-999, October.
    11. Francesca Cornaglia & E. Feldman, 2017. "Productivity, Wages, and Marriage: A Case Study in Professional Athletics," Working Papers 818, Queen Mary University of London, School of Economics and Finance.
    12. Stephen L. Mehay & William R. Bowman, 2005. "Marital Status and Productivity: Evidence from Personnel Data," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 63-77, July.
    13. Blackaby, D.H. & Carlin, Paul S. & Murphy, P.D., 2007. "A change in the earnings penalty for British men with working wives: Evidence from the 1980's and 1990's," Labour Economics, Elsevier, vol. 14(1), pages 119-134, January.
    14. Mary Blair-Loy & Amy S. Wharton, 2004. "Mothers in Finance: Surviving and Thriving," The ANNALS of the American Academy of Political and Social Science, , vol. 596(1), pages 151-171, November.
    15. Nottmeyer, Olga, 2010. "Does Intermarriage Pay Off? A Panel Data Analysis," IZA Discussion Papers 5104, Institute of Labor Economics (IZA).
    16. Olga Nottmeyer, 2010. "Does Intermarriage Pay Off?: A Panel Data Analysis," SOEPpapers on Multidisciplinary Panel Data Research 314, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Greg Hundley, 2000. "Male/Female Earnings Differences in Self-Employment: The Effects of Marriage, Children, and the Household Division of Labor," ILR Review, Cornell University, ILR School, vol. 54(1), pages 95-114, October.

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