Family Earnings and Wage Inequality Early in the Life Cycle

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Abstract
This article proposes an explanation for the fact that while wages of married women contribute to equalizing the distribution of family wages the equalizing effect declines during the early stages of the married life cycle. The explanation is based on the interaction between on-the-job accumulation of human capital and labor supply behavior. Empirical results from the NLS panel data suggest that the explanation is plausible and also show that in contrast to the results of previous cross-section studies there is no decline over time in the equalizing effect of wives' earnings on the distribution of family earnings.
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