Title: The marriage premium and compensating wage differentials.

POPLINE Document Number: 208290

Author(s):

Reed WR
Harford K

Source citation:

JOURNAL OF POPULATION ECONOMICS, 1989 Dec;2(4):237-65.

Abstract:

This paper proposes and tests an alternative explanation of the marriage premium that relies upon differences in workers' tastes and compensating wage differentials. A key assumption is that marital status proxies for the consumption of family goods, such as children, and that these are costly. Workers whose greater demands for family goods are taste- generated and shown to choose jobs that offer greater wage, and less non-pecuniary compensation. This creates an observed wage premium that has nothing to do with differences in workers' productivities. Supporting empirical evidence for this hypothesis is presented, including a reevaluation of previous studies. (author's)

Keywords:

United States
Income
Marital Status
Marriage
Wages
Family and Household
Productivity
Mathematical Model
Developed Countries
North America
Americas
Socioeconomic Factors
Economic Factors
Nuptiality
Macroeconomic Factors
Economic Development
Models, Theoretical
Research Methodology