Male marital wage differentials: training, personal characteristics, and fixed effects

Using the National Longitudinal Survey of Youth 1979, we replicate previous estimates of the marital wage differential for white men, extend the analysis to African American men, then explain the within and between race differentials. We first control for formal job training, then for cognitive skills, parental background, and self-esteem with little effect. By contrast, the white differential but not the black differential disappears in fixed-effects estimation. We reconcile the cross-section/panel differentials by focusing on the distinct identification conditions employed by each technique. Men who never change marital status play a significant role in white cross-sectional estimates. Reprinted by permission of Wiley-Blackwell