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Marriage and Wages: A Test of the Specialization Hypothesis
Author(s) -
BARDASI ELENA,
TAYLOR MARK
Publication year - 2008
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2007.00630.x
Subject(s) - unobservable , economics , productivity , econometrics , panel data , selection (genetic algorithm) , test (biology) , labour economics , demographic economics , macroeconomics , biology , paleontology , artificial intelligence , computer science
We investigate the relationship between marriage and wages among men in Britain using panel data. Our econometric specifications allow for observed and unobserved heterogeneity and explicitly test the role of intra‐household specialization in explaining the observed relationship. Our estimates provide evidence for the existence of large selection effects into marriage based on observable and unobservable characteristics that are positively correlated with wages. After accounting for individual‐specific time‐invariant effects and a wide range of individual, household, job and employer related characteristics, we find a statistically significant premium that can be attributed to productivity differences largely resulting from intra‐household specialization.