title: The marriage premium and compensating wage differentials.
abstract: This paper proposes and tests an alternative explanation of the marriage premium that relies upon differences in workers' tastes and compensating wage differentials.  A key assumption is that marital status proxies for the consumption of family goods, such as children, and that these are costly.  Workers whose greater demands for family goods are taste- generated and shown to choose jobs that offer greater wage, and less non-pecuniary compensation.  This creates an observed wage premium that has nothing to do with differences in workers' productivities.  Supporting empirical evidence for this hypothesis is presented, including a reevaluation of previous studies.
authors.forename: W R
authors.initials: WR
authors.lastname: Reed
authors.forename: K
authors.initials: K
authors.lastname: Harford
mesh_terms: D000569:Americas; D019049:Developed Countries; D004467:Economics; D004526:Efficiency; D005191:Family Characteristics; D007182:Income; D017533:Marital Status; D008393:Marriage; D008962:Models, Theoretical; D009656:North America; D012106:Research; D012456:Salaries and Fringe Benefits; D012959:Socioeconomic Factors; D014481:United States
keywords: Americas; Developed Countries; Economic Development; Economic Factors; Family And Household; Income; Macroeconomic Factors; Marital Status; Marriage; Mathematical Model; Models, Theoretical; North America; Northern America; Nuptiality; Productivity; Research Methodology; Socioeconomic Factors; United States; Wages