Is the male marriage premium due to selection? The effect of shotgun weddings on the return to marriage

In standard cross-sectional wage regressions, married men appear to earn 10 to 20 percent more than comparable never-married men. One proposed explanation for this male marriage premium is that men may be selected into marriage on the basis of characteristics valued by employers as well as by spouses or because they earn high wages. This paper examines the selection hypothesis using a "natural experiment" that may make marital status uncorrelated with earnings ability for some men. We compare the estimated marriage premium between white men whose first marriages are followed by a birth within seven months and other married white men in the United States. Married men with a premarital conception generally have a lower return to marriage than other married men. Our results suggest that a substantial portion of the marriage premium is due to selection.Demography ; Wages

Employment of women and demand-side forces

Using the 1964–95 March Current Population Surveys and the 1940–90 Census, this paper examines the relationship between female employment growth and changes in labor demand. Specifically, the authors examine whether industrial change and changes in labor demand can account for both the acceleration and deceleration of female employment growth across the decades as well as the pattern of biased growth in favor of more skilled women. They find that labor demand proxies are successful in accounting for the pattern of biased growth but are less successful in accounting for the overall acceleration of female employment, particularly in the 1970s.Labor supply ; Women - Employment

Does the Beige Book move financial markets?

About two weeks prior to each FOMC meeting, the Federal Reserve releases a description of economic activity in a document called the Beige Book. The authors examine whether the descriptive content of the Beige Book affects asset prices. The results indicate that more positive Beige Book reports on economic growth are associated with increases in interest rates, particularly long-term rates, even after controlling for other macroeconomic data releases. Stronger Beige Book reports are positively associated with changes in equity prices during expansions but negatively during recessions.Business forecasting ; Economic conditions - United States ; Federal Reserve System ; Economic indicators ; Financial markets

Does Marriage Lead to Specialization? An Evaluation of Swedish Trends in Adult Earnings Before and After Marriage

We examine whether marriage leads to specialization in Sweden by implementing a model that differentiates specialization in the household by cohabitation and marriage. Our paper evaluates this model using panel data to analyze trends in earnings before and after marriage between 1985 and 1995 for married and long-term cohabiting Swedish couples with children. To identify the effect of marriage on earnings we use the reform of the widow’s pension system that resulted in a marriage boom in Sweden in 1989 and difference-in-difference estimation. Our results show that most of the male marriage premium can be explained by positive selection whereas the female marriage penalty reflects increased specialization in home production and childcare. The findings suggest that the positive selection of men into marriage translates into the increased specialization of women. We also find evidence that marriage facilitates specialization in the few couples where mothers earn more than fathers, resulting in a marriage premium for women and a marriage penalty for men. Finally, we find that the net effect of marriage on family earnings is zero because the male marriage premium is offset by the female marriage penalty. Our results show that specialization results from the legal arrangement of marriage, not from the living arrangement of the household.Marriage; Marriage premium; Specialization

Preface: Technology, growth, and the labor market

In recent years, economic prognosticators have pondered whether the U.S. economy has entered a new era characterized by technological innovations that have raised productivity and, accordingly, removed pricing power from producers. Although the 2001 recession quelled debate about whether the United States, and perhaps the world, had entered a period of sustained high levels of economic growth, researchers continue to investigate the economic effects of technological change. ; This issue of the Economic Review contains four articles that examine the underpinnings of the "new economy"-technology and its effects on macroeconomic growth and the labor market. These papers were among those presented at the "Technology, Growth, and the Labor Market" conference sponsored by the research department of the Federal Reserve Bank of Atlanta and the Andrew Young School of Policy Studies at Georgia State University in January this year. This preface summarizes all the speeches, papers, and discussant comments presented at the conference.Labor market ; Productivity ; Technology

Studies of the differential absorption rocket experiment

Investigations of the ionosphere, in the rocket program of the Aeronomy Laboratory, include a propagation experiment, the data from which may be analyzed in several modes. This report considers in detail the differential absorption experiment. The sources of error and limitations of sensitivity are discussed. Methods of enhancing the performance of the experiment are described. Some changes have been made in the system and the improvement demonstrated. Suggestions are made for further development of the experiment

Gender differences in salary and promotion for faculty in the humanities, 1977–95

This study uses data from the Survey of Doctorate Recipients to evaluate gender differences in salaries and promotion for academics in the humanities. Differences in employment outcomes by gender are evaluated using three methods: the Oaxaca decomposition is used to examine salary differentials, and binary choice models and duration analysis are used to estimate the probability of promotion to tenure. Over time, gender salary differences can largely be explained by academic rank. Substantial gender differences in promotion to tenure exist after controlling for productivity and demographic characteristics. However, the authors observe a slight decline in the gender promotion gap for the most recent cohort evaluated. On the basis of this evidence, the authors conclude that gender discrimination for academics in the humanities tends to operate through differences in promotion, which in turn affects wages.Discrimination in employment ; Labor market