Consider the wellstudied fact that married men earn more tha

Consider the well-studied fact that married men earn more than single men, a concept known as the male marriage premium. Do a rigorous evaluation of the relationship between being married and earning more money: What are some differences between a group of married men and a group of single men that might generate this relationship? If we control for these observed differences, does the male marriage premium still exist? What are some likely omitted variables in the estimation of the impact of marriage on earnings? Be sure to explain why the omitted variables you chose are valid. How did researches try to control for these omitted variables? What studies did they di ti try and estimate the causal relationship between marriage end earnings? If we accept the idea that there is a causal link for men between getting married and earning more money, why does marriage increase men\'s earnings?

Solution

1) Married men earn more because they have the responsibility to take care of their family . Married men are more likely to work longer hours than single men and also married men are less prone to addiction like alcohol , drugs etc. Single men are less likely to work more and as a result they end up earning less when compared to married men .

2) Even if we control for these observed differences like addiction in single men than in married men , men with higher income are simply more likely to be married. Income makes it easier to attract a spouse;

3) Some of the omitted variables in the estimation of the impact of marriage on earnings are :Level of education , Social background , Education level of the spouse , Educational background of the parents etc .

The omitted variables are valid because if we ignore the level of eduation of married men and single men we could observe that level of education a person has recieved plays a major role in determining his earnings . Educated men are more likely to earn more than mean with lesser education . Social background also plays a major role in determining income level . Men with a weak social background are more likely to earn less than mean with higher social status .

4) The causal effect of marriage on male income is smaller . Men with higher income are simply more likely to be married. Marriage causally increases male income by making men more productive workers. Marriage makes men work more hours; it makes them work harder per hour; it makes them control their tempers better; all of these and more.