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

Arbeitspapier

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 selfselection, 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1470

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Labor Turnover; Vacancies; Layoffs ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Statistical Simulation Methods: General ; Marriage; Marital Dissolution; Family Structure; Domestic Abuse
• Subject: marriage and marital dissolution ; job turnover ; wage rates ; panel data ; Ehe ; Familienökonomik ; Arbeitsplatzsicherung ; Arbeitsmobilität ; Lohn ; Erwerbsverlauf ; Schätzung ; Vereinigte Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ahituv, Avner ; Lerman, Robert I.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/20769
• Last update: 10.03.2025, 11:43 AM CET