IDEAS home Printed from https://ideas.repec.org/p/hhs/huiwps/0034.html
   My bibliography  Save this paper

The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?

Author

Listed:
  • Åström, Johanna

    (The Swedish Retail Institute (HUI))

Abstract

This paper studies how the spouse’s productivity in the labor market affects one’s individual earnings when married. Theoretically, the high productivity of a spouse in a marriage could affect the other spouse’s earnings in two ways: negatively through specialization and division of labor, or positively from human capital spillover. Using longitudinal microdata on individuals as both single and married people allows us to estimate the spouses’ productivity as a single persons and thereby avoid problems of endogeneity between the two spouses’ labor market performances. Productivity is approximated with residuals from estimates of pre-marriage earnings equations. Results indicate that there are negative effects of the spouse’s productivity on individual earnings for both males and females, and that this effect appears to be enhanced by the duration of the marriage. However, closer examination shows that only the youngest groups of males and females experience this negative effect. In addition, there is some evidence for a positive effect of the husband’s productivity on earnings in the case of older groups of females.

Suggested Citation

  • Åström, Johanna, 2009. "The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?," HUI Working Papers 34, HUI Research.
    • Handle: RePEc:hhs:huiwps:0034
    as

    Download full text from publisher

    File URL: http://www.hui.se/MediaBinaryLoader.axd?MediaArchive_FileID=457976e4-9f29-4667-a4cf-1b2c01fcd3ab&MediaArchive_ForceDownload=true
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanders Korenman & David Neumark, 1992. "Marriage, Motherhood, and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 233-255.
    2. Cornwell, Christopher & Rupert, Peter, 1997. "Unobservable Individual Effects, Marriage and the Earnings of Young Men," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 285-294, April.
    3. Alexandre Mas & Enrico Moretti, 2009. "Peers at Work," American Economic Review, American Economic Association, vol. 99(1), pages 112-145, March.
    4. Benham, Lee, 1974. "Benefits of Women's Education within Marriage," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 57-71, Part II, .
    5. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
    6. Michael Beenstock, 2007. "Do abler parents have fewer children?," Oxford Economic Papers, Oxford University Press, vol. 59(3), pages 430-457, July.
    7. Laura Chadwick & Gary Solon, 2002. "Intergenerational Income Mobility Among Daughters," American Economic Review, American Economic Association, vol. 92(1), pages 335-344, March.
    8. Sanders Korenman & David Neumark, 1991. "Does Marriage Really Make Men More Productive?," Journal of Human Resources, University of Wisconsin Press, vol. 26(2), pages 282-307.
    9. Behrman, Jere & Birdsall, Nancy & Deolalikar, Anil, 1995. "Marriage Markets, Labor Markets, and Unobserved Human Capital: An Empirical Exploration for South-Central India," Economic Development and Cultural Change, University of Chicago Press, vol. 43(3), pages 585-601, April.
    10. Smith, James P, 1979. "The Distribution of Family Earnings," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 163-192, October.
    11. Ribar, David C., 2004. "What Do Social Scientists Know About the Benefits of Marriage? A Review of Quantitative Methodologies," IZA Discussion Papers 998, Institute of Labor Economics (IZA).
    12. David S Loughran & Julie Zissimopoulos, 2004. "Are There Gains to Delaying Marriage? The Effect of Age at First Marriage on Career Development and Wages," Working Papers 207, RAND Corporation.
    13. Arne Risa Hole, 2006. "Calculating Murphy-Topel variance estimates in Stata: A simplified procedure," Stata Journal, StataCorp LP, vol. 6(4), pages 521-529, December.
    14. Lee Benham, 1974. "Benefits of Women's Education within Marriage," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 57-75, National Bureau of Economic Research, Inc.
    15. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    16. Robert A. Nakosteen & Michael A. Zimmer, 1987. "Marital Status and Earnings of Young Men: A Model with Endogenous Selection," Journal of Human Resources, University of Wisconsin Press, vol. 22(2), pages 248-268.
    17. Kermit Daniel, "undated". "Does Marriage Make Men More Productive?," University of Chicago - Population Research Center 92-2, Chicago - Population Research Center.
    18. David S Loughran & Julie Zissimopoulos, 2004. "Are There Gains to Delaying Marriage? The Effect of Age at First Marriage on Career Development and Wages," Working Papers WR-207, RAND Corporation.
    19. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    20. Lee Benham, 1974. "Benefits of Women's Education within Marriage," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 375-394, National Bureau of Economic Research, Inc.
    21. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
    22. 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.
    23. Eng Seng Loh, 1996. "Productivity Differences and the Marriage Wage Premium for White Males," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 566-589.
    24. 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.
    25. Henz, Ursula & Sundström, Marianne, 2001. "Partner Choice and Women's Paid Work in Sweden - The Role of Earnings," Working Paper Series 1/2000, Stockholm University, Swedish Institute for Social Research.
    26. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    27. 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.
    28. Stefania Rossetti & Paola Tanda, 2000. "Human Capital, Wages and Family Interactions," LABOUR, CEIS, vol. 14(1), pages 5-34, March.
    29. David Lam, 1988. "Marriage Markets and Assortative Mating with Household Public Goods: Theoretical Results and Empirical Implications," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 462-487.
    30. 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.
    31. Robert A. Nakosteen & Olle Westerlund & Michael A. Zimmer, 2004. "Marital Matching and Earnings: Evidence from the Unmarried Population in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    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. Martin Dribe & Paul Nystedt, 2013. "Educational Homogamy and Gender-Specific Earnings: Sweden, 1990–2009," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1197-1216, August.
    2. 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).
    3. 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.
    4. Åström, Johanna, 2011. "The Effects of Spousal Education on Individual Earnings – A Study of Married Swedish Couples," HUI Working Papers 32, HUI Research.
    5. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    6. 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.
    7. P. Taylor, Mark & Bardasi, Elena, 2005. "Marriage and wages," ISER Working Paper Series 2005-01, Institute for Social and Economic Research.
    8. Ronald Mincy & Jennifer Hill & Marilyn Sinkewicz, 2009. "Marriage: Cause or mere indicator of future earnings growth?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(3), pages 417-439.
    9. 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.
    10. 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.
    11. Ribar, David C., 2004. "What Do Social Scientists Know About the Benefits of Marriage? A Review of Quantitative Methodologies," IZA Discussion Papers 998, Institute of Labor Economics (IZA).
    12. Esfandiar Maasoumi & Daniel L. Millimet & Dipanwita Sarkar, 2009. "Who Benefits from Marriage?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 1-33, February.
    13. Daniela Casale & Dorrit Posel, 2010. "The Male Marital Earnings Premium in the Context of Bride Wealth Payments: Evidence from South Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 58(2), pages 211-230, January.
    14. 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.
    15. 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.
    16. 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.
    17. Papps, Kerry L., 2006. "The Effects of Divorce Risk on the Labour Supply of Married Couples," IZA Discussion Papers 2395, Institute of Labor Economics (IZA).
    18. 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.
    19. Rodgers III, William M. & Stratton, Leslie S., 2005. "The Male Marital Wage Differential: Race, Training, and Fixed Effects," IZA Discussion Papers 1745, Institute of Labor Economics (IZA).
    20. William M. Rodgers & Leslie S. Stratton, 2010. "Male Marital Wage Differentials: Training, Personal Characteristics, And Fixed Effects," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 722-742, July.

    More about this item

    Keywords

    Marriage; Assortative mating; Earnings; Specialization;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

    Statistics

    Access and download statistics

    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:hhs:huiwps:0034. 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: Hans Seerar Westerberg (email available below). General contact details of provider: https://edirc.repec.org/data/huistse.html .

    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.