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http://ssrn.com/abstract=560241
 
 

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


Avner Ahituv


University of Haifa

Robert I. Lerman


The Urban Institute; American University; Institute for the Study of Labor (IZA)

January 2005

IZA Discussion Paper No. 1470

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.

Number of Pages in PDF File: 51

Keywords: Marriage and Marital Dissolution, Job Turnover, Wage differentials

JEL Classification: C15, C33, J12, J31, J63

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Date posted: July 2, 2004  

Suggested Citation

Ahituv, Avner and Lerman, Robert I., Job Turnover, Wage Rates, and Marital Stability: How Are They Related? (January 2005). IZA Discussion Paper No. 1470. Available at SSRN: http://ssrn.com/abstract=560241

Contact Information

Avner Ahituv (Contact Author)
University of Haifa ( email )
Haifa
Israel
04-8249588 (Phone)
Robert I. Lerman
The Urban Institute ( email )
2100 M Street, NW
Washington, DC 20037
United States
American University
4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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