Marriage, wages and household specialization: An empirical analysis for women

Empirical research has consistently shown that married males earn more than single, never married males. Similar research for females is scarce. This dissertation is a collection of three essays on the female marriage premium. The results provide evidence for a strong association between marital status and higher wages and signify changing preferences and household structures. They also suggest decreased specialization gains within a household and a more equitable distribution of labor and time on household tasks and market activities among married males and females.;The first and the second essays are aimed at identifying the existence and ascertaining the source of the female marriage premium. They provide the first in-depth study of the female marriage premium, using two semi-parametric techniques that have not been applied to this literature previously. Selection on observable attributes is examined using cross-section propensity score matching methods. Selection on unobservable characteristics is explored using Heckman's conditional difference-in-difference model. Both techniques create a quasi-experimental data set, without imposing functional form assumptions or exclusion restrictions. unlike previous literature, I have used recent data from the 2007 wave of Current Population Survey (CPS) and the 2001-2007 waves of the Panel Study of Income Dynamics (PSID). The analysis confirms that marriage itself does not cause an increase in women's wages. The observed 'female marriage premium' occurs due to the presence of time-invariant unobserved heterogeneity that makes these women attractive in the labor market as well as the marriage market. As a result, women with higher earning potential are more likely to get married, not due to the presence of better and more attractive observable characteristics, but due to the existences of desirable unobserved traits. The last essay tests gender role specialization and division of labor practiced among working couples.