A New Explanation for the Shifting Spousal Earnings Correlation in the United States

This paper investigates the sources of the rising correlation between spouses’ earnings in the United States. The dominant explanation is the growth in women’s employment and earnings, but it is unclear whether the increase in women’s economic status is the only important factor. This study examines the roles of the changes in not only women’s but also men’s labor market position in shaping the trends in spousal earnings correlation. Preliminary findings show that, in addition to the growth in women’s earnings, shifts in men’s earnings position have also played an important role.