The marital earnings premium: an IV approach

Research output: Contribution to journalArticlepeer-review

Abstract

Numerous studies find that married men earn more than single men. However, identifying whether and why marriage affects earnings is complicated by the fact that marriage market outcomes are jointly determined with potential earnings. As such, I exploit exogenous variation in marriage induced by the introduction of no-fault divorce laws in the USA to estimate the effect of marriage on the earnings of men. I find a 38% causal increase of marriage on earnings of husbands. This increase in earnings is explained by a large increase in labor market work after marriage. My findings are robust to the possibility of unobserved heterogeneity in the effect of marriage on earnings across individuals.
Original languageEnglish
Pages (from-to)709-747
JournalEmpirical Economics
Volume62
Early online date4 Feb 2021
DOIs
Publication statusPublished - 2022
Externally publishedYes

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