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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.
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Equivalent Couples
Two couples are considered to be equivalent if they produce the same rotational effect on a rigid body. In other words, the two couples have the same magnitude and act in the same direction, causing the same angular displacement or acceleration in the body.
For instance, consider two couples lying in the plane of the page, with one having a pair of equal...
