Money,Marriage, and Children: Testing the Financial Expectations and Family Formation Theory

Using data from the Fragile Families and Child Wellbeing Survey (N = 2,954), a birth cohort study, this work examines how gains in earnings and income are associated with marriage and subsequent childbearing for low‐income couples. Using change models, results indicate that positive changes in earnings, controlling for baseline levels of earnings, were associated with greater odds of marriage. Cohabiting couples who became poor were associated with a 37% decrease in marriage likelihood. Neither earnings nor income was affiliated with additional fertility. Results are consistent with the Financial Expectations and Family Formation theory, which posits that positive economic circumstances are necessary for marriage, but are not associated with subsequent childbearing.     

Is there an Intermarriage Premium for Male Immigrants? Exogamy and Earnings in Sweden 1990–2009

This paper analyzes the impact of intermarriage on the economic integration of immigrants in Sweden, measured by annual earnings. We use longitudinal register data for the period 1990–2009 for the total population of immigrant men born 1960–1974. The results reveal large intermarriage premiums, but overall this seems to be a result of selection effects as most of the premium is visible already at the time of marriage. For the most economically marginalized immigrants, however, an intermarriage premium arises within marriage implying that forming a union with a native triggers a more rapid earnings growth among them.     

Why do married men earn more: productivity or marriage selection?

Using data from the Current Population Survey March Supplement 1999, this study examines why married men earn more than men who have never married. We find that the marriage wage premium cannot be attributed to the unobservable higher earnings capability of married men. Instead, wage gains from marriage are explained by the degree of specialization within the household. Our findings cast doubt on the argument that the selection of high-ability men into marriage is the cause of the marriage wage premium.     

Marriage,Children, and Self-Employment Earnings: An Analysis of Self-Employed Women in the US

This research focuses on the relationship between marriage and women’s self-employment earnings in the US. The basic proposition is that marriage poses an additional constraint on women entrepreneurs. By acknowledging the overlap of gender, family, and business we are able to observe the relationship between the institution of marriage and women’s self-employment earnings. This research used the Integrated Public Use Microdata System’s 2009 American Community Survey. Marriage and children had a negative association with women’s self-employment earnings.     

Marriage following the birth of a child among cohabiting and visiting parents

Approximately half of nonmarital births are to mothers in cohabiting relationships, and an additional 30% are to mothers in visiting relationships. I use data (N= 1,945) from the Fragile Families Study to investigate whether the determinants of marriage in the year following a child's birth are similar for cohabiting and visiting parents. The results show that mothers’ education is predictive of marriage for cohabiting parents, whereas mothers’ earnings are predictive of marriage for visiting parents. The findings imply that visiting mothers place a greater emphasis on economic independence and sufficient resources to establish an independent household before transitioning to marriage. No differences in the association of relationship quality or attitudes and marriage are found.     

Happily ever after? Intrahousehold bargaining and the distribution of utility within marriage

Using a rich longitudinal data set of married couples from the Korean Labor and Income Panel Study, this article seeks to uncover the intramarital allocation of experienced utility and its drivers. We find both substantial gains from marriage and effects of relative predicted earnings outside of marriage on relative gains from marriage. These findings are consistent with cooperative bargaining models and with models viewing individuals as having a demand for household production services by a spouse, with market forces influencing the price of such services. In addition, we find that men benefit more from marriage than women and that this gender gap is more pronounced for older couples. This is likely to be due to social norms and prescribed gender roles which are more prevalent within the older generation.     

Marriage and Women's Earnings from Work

Abstract

Marital status and earnings from work for women are studied using the National Longitudinal Surveys (NLS), Young Women's Cohort. The study focuses on how being continuously married affects the earnings of women from young adulthood through their pre-retirement years. Earnings from work are measured by average annual wages between 1968 and 1999. Bivariate findings suggest that marriage and family are associated with lessening the wage-earning potential of women over the life course but multivariate analysis shows no effect beyond that of other measures accounted for in the study. Education and number of hours worked are positively related to earnings outcomes and the number of dependents has a negative effect. Policy makers who are calling for an increase in marriage-promoting activities for TANF recipients are using marriage as a primary solution for eliminating poverty and thereby ignoring real ways to help women earn more for themselves and their families. The use of TANF funds for encouraging marriage in general is also of questionable economic advantage to non-welfare women.     

Improved legal status as the major source of earnings premiums associated with intermarriage: evidence from the 1986 IRCA amnesty

Exploiting a natural experiment, this paper uses the 1990 US Census data and the 1986 Immigration Reform and Control Act amnesty to investigate the major mechanism through which intermarriage influences immigrant earnings. My strategy involves comparing international marriage premiums received by two groups of Mexican immigrants who arrived before and after the cutoff date of eligibility. Both groups face similar language and culture related obstacles and have to adapt themselves to the new environment, except that unauthorized Mexican workers who arrived before 1982 could obtain legal status through the amnesty while those who arrived after the cutoff date obtained legal status through marriage to a US citizen. Instrumental variables estimates show a significantly larger intermarriage premium for Mexican immigrants who migrated after the cutoff date and no statistically significant intermarriage premium is found in the pre-1982 group. The 35 % premium gap indicates a large effect of intermarriage on immigrant labor market outcomes, operating primarily through an improvement of legal status.     

Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis

This paper provides new evidence on the increase in wage earnings for men due to marriage and cohabitation (in the literature, commonly referred to as marital and cohabitation wage premiums for men). Using data for a sample of white men from the National Longitudinal Survey of Youth 1979, the paper shows that even after accounting for potential selection bias there is a cohabitation wage premium for men, albeit smaller than the marriage premium. Our analysis shows that a joint human capital hypothesis (a la Benham in J Polit Econ 82(2, Part 2):S57–71, 1974) with intra-household spillover effects of partner’s education can explain the existence of the wage premiums. Our estimates provide some empirical support for the joint human capital hypothesis.     

The Relationship Between Wife’s Education and Husband’s Earnings: Evidence from 1960 to 2000

Previous research finds a positive relationship between a wife’s education and her husband’s earnings using data from the 1960s. Earlier theories suggest that benefits accrue from informational sharing between partners in a marriage. This paper tests the hypothesis that a wife’s education is positively associated with her husband’s earnings, using data from the 1960, 1970, 1980, 1990, and 2000 Censuses. Between 1960 and 2000, the educational attainment and labor-force participation of married women has increased dramatically. As women have embarked upon their own careers, has their education continued to be positively associated with their husbands’ earnings? Yes. The coefficient of the wife’s education remains positive and significant for all the years under study. The size of the coefficient decreases, however, from 1960 to 2000.     

Effect of Marriage and Spousal Criminality on Recidivism

The authors analyzed whether the effect of marriage on recidivism varied by spousal criminality. For this purpose, they used propensity score matching and full population data from Statistics Denmark on all unmarried and previously convicted men from birth cohorts 1965–1985 (N = 102,839). The results showed that marriage reduced recidivism compared to nonmarriage only when the spouse had no criminal record. Similarly, marriage to a nonconvicted spouse reduced recidivism significantly more than marriage to a convicted spouse. These findings not only underline how important marriage is for social integration but also stress the heterogeneous nature of the protective effects of marriage.     

The effect of breastfeeding on young adult wages: new evidence from the add health

A growing literature in economics has examined the effect of early childhood health investments on adult human capital formation and labor market outcomes. This study is the first to examine the effect of having been breastfed as an infant on young adult earnings. Using data from the National Longitudinal Study of Adolescent Health (Add Health), ordinary least squares estimates suggest that breastfeeding is associated with a 10–12 % increase in hourly earnings. However, after ensuring common support on observables via propensity score matching and controlling for unmeasured family level heterogeneity common to siblings via family fixed effects, the estimated associations become much smaller and are statistically indistinguishable from zero. We conclude that the benefits of having been breastfed do not appear to extend to the labor market.     

Job turnover, wage rates, and marital stability: How are they related?

This study examines the interplay between job stability, wage rates, and marital stability. We use a Dynamic Selection Control model in which young men make sequential choices about work and family and estimate the model using an approach that takes account of self-selection, simultaneity and unobserved heterogeneity. The results quantify how job stability affects wage rates, how both affect marital status, and how marital status affects earnings and job stability. The study reveals robust evidence that job changes lower wages and the likelihood of getting married and remaining married. At the same time, marriage raises wage rates and job stability. To project the sequential effects linking job change, marital status, and earnings, we simulate the impacts of shocks that raise preferences for marriage and that increase education. Feedback effects cause the simulated wage gains from marriage to cumulate over time, indicating that long-run marriage wage premiums exceed conventional short-run estimates.     

JOB MOBILITY AND EARNINGS INSTABILITY

There is still no consensus on the causes of the increase in the variance of transitory earnings (earnings instability) in the United States. It is difficult to attribute the rise in instability to job mobility because there is no evidence of a concurrent increase in job turnover or separations. Using an error component model of the covariance structure of earnings on Panel Survey of Income Dynamics and Survey of Income and Program Participation data, this study shows that job mobility and the increase in the variance of wage changes upon job change accounts for a substantial part of the increase in earnings instability. The empirical evidence is consistent with the simulations of a search and matching model where an increase in the variance of productivity shocks increases on‐the‐job search and earnings instability among job changers while leaving job turnover approximately constant. (JEL J21, J31)     

Mental Well‐Being Differences in Cohabitation and Marriage: The Role of Childhood Selection

Prior studies have found that marriage benefits well‐being, but cohabitation may provide similar benefits. An analysis of the British Cohort Study 1970, a prospective survey following respondents to age 42, examines whether partnerships in general, and marriage in particular, influence mental well‐being in midlife. Propensity score matching indicates whether childhood characteristics are a sufficient source of selection to eliminate differences in well‐being between those living with and without a partner and those cohabitating and married. The results indicate that matching on childhood characteristics does not eliminate advantages to living with a partner; however, matching eliminates differences between marriage and cohabitation for men and women more likely to marry. On the other hand, marriage may provide benefits to women less likely to marry unless they have shared children and are in long‐lasting partnerships. Hence, childhood selection attenuates differences between cohabitation and marriage, except for women less likely to marry.     

Evaluating the effectiveness of the Massachusetts workforce development system using no-shows as a nonexperimental comparison group

This article examines the effect of the Massachusetts workforce development system on the earnings of disadvantaged adults using nonexperimental data from the late 1990s. The authors construct a comparison sample for program participants using individuals who apply for and are offered services yet do not participate in a training program. They present a series of difference-in-difference estimates that make several alternative efforts to correct for selectivity bias, including econometric models that regression adjust for observable characteristics and fixed-effect models that adjust for time-invariant person effects. They also employ probabilistic matching techniques to more finely align the treatment and comparison samples. On average, program participants experienced 20% increases in annual earnings 1 year postintervention and 25% increases after 2 years. The authors uncover considerable heterogeneity in these effects, suggesting that the most difficult to serve and the most job ready benefit the least.     

Can Marriage Reduce Risky Health Behavior for African-Americans?

This paper estimates whether marriage can improve health outcomes for African-Americans through changes in risky health behaviors like smoking, drinking, and drug use. Using data from the National Longitudinal Study on Adolescent Health and propensity score matching methodology to account for the potential selection bias, the results show that marriage does lead to a reduction in risky health behaviors, specifically drinking and drug use. This question has important policy implications because if marriage has the same benefits for African-Americans as it does for the general population, social welfare programs can be re-evaluated to incorporate marriage promotion, and further support can be given to programs that decrease adverse health behaviors.     

Locational effects on AFDC exits: Examining local labor markets

Recent welfare reform limits welfare recipients to a maximum of five years of cash assistance. This policy change raises the question of whether it is reasonable to expect welfare recipients to be able to leave the rolls within a five year period, regardless of the economic conditions of the state or area in which they live. This article pursues this issue by examining the effects of economic conditions and residential location on a welfare recipient’s likelihood of leaving welfare over time. The analysis uses linked files from the Panel Study of Income Dynamics, the 1970 and 1980 U.S. Censuses, and County and City Data Book data from 1972 to 1994 to determine AFDC exit probabilities. The results indicate that being low-skilled and living within one of the largest U.S. cities dramatically decreases the likelihood of exit from AFDC via increased earnings. The results also show that the job loss within cities has a significant negative impact on AFDC exit probabilities for marriage, increased earnings and all exits for high school dropouts and African American AFDC recipients. However, including city employment variables did not decrease the negative effects of living within large northern cities for earnings exits. These results indicate that negative economic conditions and poor transportation within cities impede low-skilled AFDC recipients from increasing earnings and leaving welfare.     

Domestic Division of Labor and Self/Organizationally Employed Differences in Job Attitudes and Earnings

This study analyzes the association between self-employment and work-related outcomes including negative spillover between work and home, earnings, and job attitudes. National Study of the Changing Work Force 1997 data support the idea that self-employment provides workers with more scope for matching work activities to their presumed roles in the domestic division of labor. Among married women, the self-employed experience is associated with less negative spillover from job-to-home, greater job satisfaction, and less job burnout. Where pre-school children are present, the earnings of self-employed women are much less than the earnings of the organizationally employed. Among men, self-employment is associated with more job-to-home spillover when there are small children in the family, and with greater job satisfaction.     

In sickness and in health: an examination of relationship status and health using data from the Canadian National Public Health Survey

There is an extensive literature suggesting that marriage confers benefits to both men and women in the form of increased earnings, better health and a longer life. Yet, where the focus is on health, most of this work has centered on one or two measures of health outcomes or on certain health behaviors such as smoking or alcohol use and has often failed to include those who cohabit as a separate relationship status. In this paper, we extend the research on the links between health and relationship status in three important ways. First, we consider a wide array of health indicators including self-reported health, chronic conditions, physical limitations, a measure of mental health, body mass index (BMI), and a number of health-related behaviors. Second, we use data from eight waves of the Canadian National Public Health Survey between 1994 and 2008 which allows us to estimate the effect of relationship status on health in a setting in which health insurance is not dependent on marriage. Third, we incorporate cohabitation as a separate relationship status. After controlling for time-invariant factors related to selection into and out of marriage, we find that marriage confers health benefits in the form of improved mental health, and lower levels of alcohol use. Marriage, however, is not without its cost. Similar to studies using U.S. data, marriage results in higher BMI, greater incidence of overweight and obesity and lower probabilities of regular exercise. These benefits and costs accrue to those who marry, and often to cohabiters.