The Wage Effects of Marital Status and Children

Using data from the ninth wave of the Panel Study of Income Dynamics, changes in the wage effects of marital status and number-of-children for workers of the same race and sex are analyzed as more refined measures of work experience, training, and labor force attachment are substituted for conventional measures of these factors. The results indicate that number-of-children is a good proxy variable for differential work history and labor market attachment among white women, and that marital status is not a proxy for such differences among any of the four major race/sex subgroups of workers, including white women. Overall, the findings suggest that, controlling for numerous aspects of worker qualifications, workers with greater financial responsibilities to their families receive higher wages.