*We wish to thank Eleanor Brown, Ben Craig, Elizabeth Powers, Mark Schweizer, two anonymous referees, and seminar participants at the University of Rochester, University of Southern California, and the University of Waterloo. Opinions expressed here are not necessarily those of the Federal Reserve Bank of Cleveland or the Federal Reserve System.
UNOBSERVABLE INDIVIDUAL EFFECTS, MARRIAGE AND THE EARNINGS OF YOUNG MEN
Article first published online: 28 SEP 2007
Volume 35, Issue 2, pages 285–294, April 1997
How to Cite
CORNWELL, C. and RUPERT, P. (1997), UNOBSERVABLE INDIVIDUAL EFFECTS, MARRIAGE AND THE EARNINGS OF YOUNG MEN. Economic Inquiry, 35: 285–294. doi: 10.1111/j.1465-7295.1997.tb01910.x
- Issue published online: 28 SEP 2007
- Article first published online: 28 SEP 2007
While there is compelling evidence that married men earn more than unmarried men, the source of this premium remains unsettled. Using panel data from the National Longitudinal Survey of Young Men, we show that much of the premium normally attributed to marriage is associated with unobservable individual effects that are correlated with marital status and wages. To the extent there is a gain, it is purely an intercept shift and no more than 5% to 7%. Our findings cast doubt on the interpretation that marriage enhances productivity through specialization.