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Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis

Abstract  

This paper provides new evidence on the increase in wage earnings for men due to marriage and cohabitation (in the literature,
commonly referred to as marital and cohabitation wage premiums for men). Using data for a sample of white men from the National
Longitudinal Survey of Youth 1979, the paper shows that even after accounting for potential selection bias there is a cohabitation
wage premium for men, albeit smaller than the marriage premium. Our analysis shows that a joint human capital hypothesis (a la Benham in J Polit Econ 82(2, Part 2):S57–71, 1974) with intra-household spillover effects of partner’s education can explain the existence of the wage premiums. Our estimates
provide some empirical support for the joint human capital hypothesis.

  • Content Type Journal Article
  • Pages 1-16
  • DOI 10.1007/s10834-011-9252-5
  • Authors
    • Arif Mamun, Mathematica Policy Research, Inc, 600 Maryland Ave SW, Suite 550, Washington, DC 20024, USA
    • Journal Journal of Family and Economic Issues
    • Online ISSN 1573-3475
    • Print ISSN 1058-0476
Posted in: Journal Article Abstracts on 03/15/2011 | Link to this post on IFP |
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