There was a time when the phrase "American family" conjured up a single, specific image: a breadwinner dad, a homemaker mom, and their 2.5 kids living comfortable lives in a middle-class suburb. Today, that image has been shattered, due in part to skyrocketing divorce rates, single parenthood, and increased out-of-wedlock births. But whether it is conservatives bewailing the wages of moral decline and women's liberation, or progressives celebrating the result of women's greater freedom and changing sexual mores, most Americans fail to identify the root factor driving the changes: economic inequality that is remaking the American family along class lines. In Marriage Markets, June Carbone and Naomi Cahn examine how macroeconomic forces are transforming our most intimate and important spheres, and how working class and lower income families have paid the highest price. Just like health, education, and seemingly every other advantage in life, a stable two-parent home has become a luxury that only the well-off can afford. The best educated and most prosperous have the most stable families, while working class families have seen the greatest increase in relationship instability. Why is this so? The book provides the answer: greater economic inequality has profoundly changed marriage markets, the way men and women match up when they search for a life partner. It has produced a larger group of high-income men than women; written off the men at the bottom because of chronic unemployment, incarceration, and substance abuse; and left a larger group of women with a smaller group of comparable men in the middle. The failure to see marriage as a market affected by supply and demand has obscured any meaningful analysis of the way that societal changes influence culture. Only policies that redress the balance between men and women through greater access to education, stable employment, and opportunities for social mobility can produce a culture that encourages commitment and investment in family life. A rigorous and enlightening account of why American families have changed so much in recent decades, Marriage Markets cuts through the ideological and moralistic rhetoric that drives our current debate. It offers critically needed solutions for a problem that will haunt America for generations to come.

Recent decades have witnessed a sharp increase in the labor force participation of married women. The paper investigates the effect of wives' earnings on family income distribution. This effect depends on the in-equality of women's earnings as compared with other sources of income, on the correlation between the two and on the woman's share in total income. These in turn depend on participation patterns, labor supply and sex related wage differentials. In general, only the correlation between the various sources of income has an unambiguous effect on inequality, the effects of the other factors depending on the specific values of the parameters. In Israel where there are sharp differences in participation rates of married women and in sex related earnings differentials by schooling group, wives' earnings reduce total family income inequality, increasing at the same time the between-group (ethnic and schooling group) variability. The paper examines the effect of changes in the participation rate and the wife-husband earnings gap on family income inequality. It compares the effect of wives' earnings with other income sources (e.g., transfers) and examines the implication of separate tax returns for inequality

"A wonderful compendium of everything you always wanted to know about trends in women's roles—both in and out of the home. It is a balanced and data-rich assessment of how far women have come and how far they still have to go. "—Isabelle Sawhill, Urban Institute "Based primarily on the 1990 population census, Balancing Act reports on the current situation of American women and temporal and cross-national comparisons. Meticulously and clearly presented, the information in this book highlights changing behaviors, such as the growing incidence of childbearing to older women, and unmarried women in general, and a higher ratio of women's earnings to men's. The authors' thoughtful analysis of these and other factors involved in women's fin de siècle 'balancing act' make this an indispensable reference book and valuable classroom resource." —Louise A. Tilly, Michael E. Gellert Professor of History and Sociology, The New School for Social Research In Balancing Act, authors Daphne Spain and Suzanne Bianchi draw upon multiple census and survey sources to detail the shifting conditions under which women manage their roles as mothers, wives, and breadwinners. They chronicle the progress made in education—where female college enrollment now exceeds that of males—and the workforce, where women have entered a wider variety of occupations and are staying on the job longer, even after becoming wives and mothers. But despite progress, lower-paying service and clerical positions remain predominantly female, and although the salary gap between men and women has shrunk, women are still paid less. As women continue to establish a greater presence outside the home, many have delayed marriage and motherhood. Marked jumps in divorce and out-of-wedlock childbirth have given rise to significant numbers of female-headed households. Married women who work contribute more significantly than ever to the financial well-being of their families, yet evidence shows that they continue to perform most household chores. Balancing Act focuses on how American women juggle the simultaneous demands of caregiving and wage earning, and compares their options to those of women in other countries. The United States is the only industrialized nation without policies to support working mothers and their families—most tellingly in the absence of subsidized childcare services. Many women are forced to work in less rewarding part-time or traditionally female jobs that allow easy exit and re-entry, and as a consequence poverty is the single greatest danger facing American women. As the authors show, the risk of poverty varies significantly by race and ethnicity, with African Americans—most of whose children live in mother-only families—the most adversely affected. This volume contributes to the national dialogue about family policy, welfare reform, and responsibility for children by highlighting the pivotal roles women play at the intersection of family and work.

Married women in the United States are increasingly integral to their families' economic well-being. With two-earner families becoming the norm, little research investigates the role of wives in family income mobility. How much does a wife's labor market activity matter in her family's ability to gain or hold its place in the income distribution of all families? Are women's contributions to mobility weaker when children are present? Do more-educated wives make bigger contributions than wives with less education? Using the Panel Study of Income Dynamics to observe families at the beginning and end of three 10- year periods spanning the 1970s, 1980s, and 1990s, we find that married-couple families moving up the income distribution saw larger increases in wives' employment, annual work hours, and earnings than downwardly mobile married couples. These data confirm the popular perception that families needed to work more hours to move ahead or hold their own in the income distribution. In upwardly mobile families, wives' work hours increased substantially, while husbands' hours increased only modestly. Wives with children living at home were less likely to work and averaged fewer work hours; however, wives in upwardly mobile families with children increased their work hours more than those in upwardly mobile families without children. Less-educated wives' earnings gains were critically important to their families' advancement. More-educated wives also helped their families move up, but their contributions were surpassed by the earnings gains of their husbands.

We ask whether women's decisions to be in the labor force may be affected by the decisions of other women in ways not captured by standard models. We develop a model that augments the simple neoclassical framework by introducing relative income concerns into women's (or families') utility functions. In this model, the entry of some women into paid employment can spur the entry of other women, independently of wage and income effects. This mechanism may help to explain why, over some periods, women's employment appeared to rise faster than could be accounted for by the simple neoclassical model. We test the model by asking whether women's decisions to seek paid employment depend on the employment decisions of other women with whom relative income comparisons might be important. In particular, we look at the effects of sisters' employment on women's own employment. We find strong evidence that women's employment decisions are positively related to their sisters' employment decisions. We also take account of the possibility that this positive relationship arises from heterogeneity across families in unobserved variables affecting the employment decision. We conduct numerous empirical analyses to reduce or eliminate this heterogeneity bias. We also look at the relationship between husbands' relative income and wives' employment decisions. In our view, the evidence is largely supportive of the relative income hypothesis.