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Behind Every Well Paid Married Man: The Impact of the Partner's Earning Opportunity
Author(s) -
Skåtun John Douglas
Publication year - 2004
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/j.1467-8454.2004.00212.x
Subject(s) - spouse , earnings , wage , economics , labour economics , demographic economics , sociology , accounting , anthropology
This paper presents a theoretical bargaining model, which provides a new explanation for the married male wage premium. A worker can extract higher earnings from the firm when married. Whereas the married worker's wage is higher the higher is the income the spouse earns, should the bargaining break down, the worker's wage is negatively correlated with the spouse's current income.