EconPapers    
Economics at your fingertips  
 

Job Turnover, Wage Rates, and Marital Stability: How Are They Related?

Avner Ahituv () and Robert Lerman ()

No 1470, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: wage rates; marriage and marital dissolution; job turnover; panel data (search for similar items in EconPapers)
JEL-codes: C15 C33 J12 J31 J63 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2005-01
New Economics Papers: this item is included in nep-cmp and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Published in: Review of Economics of the Household, 2011, 9 (2), 221-249

Downloads: (external link)
http://ftp.iza.org/dp1470.pdf (application/pdf)

Related works:
Journal Article: Job turnover, wage rates, and marital stability: How are they related? (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp1470

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2020-11-26
Handle: RePEc:iza:izadps:dp1470