Age heterogamy and gender-specific earnings: Sweden 1990-2009

Previous research has shown considerable marriage premiums in earnings for men, but often penalties for women of being in a union. In this study we extend this research by analyzing how the age difference between spouses affects the earnings profiles of men and women. As we follow people over time in advance as well as within their marriage we are able to separate pre- from post-marital earnings movements. The data consists of information on annual earnings 1990-2009 for all Swedes born 1960-1974. The results seem to indicate that age-homogamy is best for earnings, for both men and women. Quite interestingly, age-heterogamy has similar effects of earnings regardless of which spouse is being oldest. However, most of these results are explained by assortative mating, in which men and women with greater earnings potentials find partners of a similar age. Overall, the age-difference between spouses seems to have a very limited causal effect on individual earnings.