Exploring Gender Differences in Marital and Parental Income Premiums Among Financial Advisors

Derek T. Tharp (), Elizabeth J. Parks-Stamm, Meghaan Lurtz and Michael Kitces
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Derek T. Tharp: University of Southern Maine
Elizabeth J. Parks-Stamm: University of Southern Maine
Meghaan Lurtz: Kansas State University
Michael Kitces: Kitces.com

Journal of Family and Economic Issues, 2022, vol. 43, issue 1, No 2, 15-35

Abstract: Abstract This study examined marital and parental income premiums among financial advisors. Financial advisors provide an interesting context for exploring such premiums, as financial advising is a historically male-dominated profession that has been found to exhibit large unadjusted gender pay gaps. Using a large, cross-sectional sample of financial advisors recruited via a professional continuing education website (n = 459), this study investigates whether gender differences exist among financial advisors with respect to the marriage premium, the parenthood premium, the parental leave effect, and the stay-at-home spouse premium. This study examined premiums both with and without potentially endogenous human capital covariates. Without including potentially endogenous covariates, a marriage premium was observed among men but not women, a parenthood premium was observed among women and a penalty observed among men, a parental leave penalty was observed among neither men nor women, and a stay-at-home spouse premium was observed among men but not women. When potentially endogenous covariates were included, a marriage penalty was observed among women but not men, a parenthood premium was observed among women while a parenthood penalty was observed among men, a parental leave premium was observed among men but not women, and a stay-at-home spouse premium was observed among men while a stay-at-home spouse penalty was observed among women. Exploratory Blinder-Oaxaca decomposition analyses revealed sizeable unadjusted income gaps by gender (15.0%), marriage (40.2%), parenthood (7.4%), parental leave (11.6%), and spousal employment (41.0%).

Keywords: Marriage premium; Fatherhood premium; Parental leave effect; Stay-at-home spouse premium; Gender differences; Gender pay gap; D13; J13; J16; 2950; 2956; 2970; 2950; 2956; 2970 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10834-021-09766-4

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