Men, Money, and Marriage: Are High Earners More Prone Than Low Earners to Marry?

Objective. Most empirical research on earnings reveals that married men earn more than never married or divorced men. This research addresses the question of whether married men are seen to earn more because they are economically attractive candidates for marriage in the first place. Methods. Data on young employed men are taken from three waves of the Panel Study of Income Dynamics (PSID). We exploit the longitudinal nature of the PSID to model individual transitions in marital status as functions of variables that capture men's earnings prospects. Results. Single men who are characterized by favorable earnings residuals are more likely to marry. Married men with favorable expected earnings are less prone to divorce. Conclusion.The observed earnings premium of married men results in part from economic selection of high earners into marriage.