Gender Identity, Co-working Spouses and Relative Income Within Households
- American Economic Journal: Applied Economics (Forthcoming)
Bertrand, Kamenica and Pan (2015) document that in the United
States there is a discontinuity to the right of 0.5 in the distribution of households according to the female share of total earnings
which they attribute to the existence of a gender identity norm.
We provide an alternative explanation for this discontinuity. Using linked employer-employee data from Finland, we show that the
discontinuity emerges as a result of equalization and convergence
of earnings in co-working couples, and it is associated with an increase in the relative earnings of women, rather than a decrease as
predicted by the norm.
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