BUSINESS WEEK

SEPTEMBER 17, 2001

Economic trends

By Gene Koretz

Why Married Men Earn More

A new study says it solves the puzzle

What explains the so-called marriage premium--the fact that married men tend

to earn more than single men of similar backgrounds and educations?

Economists have been divided on the issue.

Some believe that married men earn more because women tend to select mates

with good earnings prospects. Others credit the institution of marriage

itself, arguing either that it makes men more responsible and diligent or

that it boosts their productivity by freeing them from housework and

allowing them to focus more on their jobs.

In a new study in the journal Economic Inquiry, Hyunbae Chun, of Queens

College in New York, and Injae Lee, of New York University, claim to solve

the puzzle. Analyzing 1999 survey data covering nearly 2,700 men, they find

that married men earn an average of 12.4% more per hour than never-married men, after adjusting for age, work experience, education, and other factors

that may affect both wages and marriage prospects.

The two researchers find no evidence that the marriage premium reflects the

better economic prospects of men who tend to get hitched. Rather, it appears

related to the state of being married--and specifically to the likelihood

that wives shoulder household tasks.

Chun and Lee report that the wage gap declines as wives put in more hours

working outside the home. While married men whose wives aren't employed earn

about 31% more per hour than never-married men, for example, men married to

women with a full-time job earn only 3.4% more.

Thus, having a wife who devotes most of her time to raising the kids and

other housework evidently pays off for dad in his work on the job. All of

which implies that the marriage premium will inevitably shrink as more wives

spend longer hours at outside jobs.