Job Turnover, Wage Rates, and Marital Stability: How are They Related?
51 Pages Posted: 2 Jul 2004
Date Written: January 2005
Abstract
This study examines the interplay between job stability, wage rates, and marital instability. We use a Dynamic Selection Control model in which young men make sequential choices about work and family. Our empirical estimates derived from the model account for self-selection, simultaneity and unobserved heterogeneity. The results capture how job stability affects earnings, how both affect marital status, and how marital status affects earnings and job stability. The study reveals robust evidence that job instability lowers wages and the likelihood of getting and remaining married. At the same time, marriage raises wages and job stability. To project the sequential effects linking job stability, 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.
Keywords: Marriage and Marital Dissolution, Job Turnover, Wage differentials
JEL Classification: C15, C33, J12, J31, J63
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Employment While in College, Academic Achievement and Post-College Outcomes: a Summary of Results
-
Are There Returns to the Wages of Young Men from Working While in School?
By V. Joseph Hotz, Lixin Colin Xu, ...
-
Parental Transfers, Student Achievement, and the Labor Supply of College Students
-
Part-Time Work, School Success and School Leaving
By Christian Dustmann, Najma Rajah, ...
-
High School Preparation and Early Labor Force Experience
By Robert H. Meyer and David A. Wise
-
Intra-Household Transfers and the Part-Time Work of Children
-
In-School Work Experience, Parental Allowances, and Wages
By Christian Dustmann, John Micklewright, ...