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effects_of_marriage_on_financial_stability [2015/11/12 13:15]
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effects_of_marriage_on_financial_stability [2017/10/19 08:16] (current)
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 ==========Effects of Marriage on Financial Stability========== ==========Effects of Marriage on Financial Stability==========
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 +Marriage is an important milestone in securing long-term financial stability. On average, entering marriage improves a man’s wages by 27 percent.((Antonovics,​ Kate, and Robert Town, "Are All the Good Men Married? Uncovering the Sources of the Marital Wage Premium,"​ //The American Economic Review// 94, no. 2 (2004): 317-321.)) According to Dr. Brad Wilcox of the University of Virginia and Dr. Wendy Wang, 97 percent of young adults who follow the “success sequence”—obtain at least a high school degree, get a job, marry, and have children, in that order—avoid poverty.((Wang,​ Wendy and W. Bradford Wilcox, "The Millennial Success Sequence: Marriage, Kids, and the '​Success Sequence'​ among Young Adults",​ American Enterprise Institute and Institute of Family Studies (June 2017), available at [[http://​www.aei.org/​wp-content/​uploads/​2017/​06/​IFS-MillennialSuccessSequence-Final.pdf]].)) The success sequence holds true for racial/ ethnic minorities, and for those from low-income families.((Wang,​ Wendy and W. Bradford Wilcox, "The Millennial Success Sequence: Marriage, Kids, and the '​Success Sequence'​ among Young Adults",​ American Enterprise Institute and Institute of Family Studies (June 2017), available at [[http://​www.aei.org/​wp-content/​uploads/​2017/​06/​IFS-MillennialSuccessSequence-Final.pdf]].)) Promoting marriage is an efficacious means of improving the financial security of American families. ​
  
 =====1. Income===== =====1. Income=====
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 Census data likewise confirm that married parents fall into the highest income brackets. In 2006, 67 percent of married-parent families had median incomes of more than $50,000 and 30 percent of such families had median incomes of more than $100,000. In comparison, only 26 percent of single mothers had median incomes of more than $50,000; in fact, 59 percent of single mothers had median incomes of less than $35,​000.((U.S. Census Bureau, //​Statistical Abstract of the United States// (2009): Table 676.)) According to Internal Revenue Service data, the reported income of more than one out of every three married couples places them in the top-income quintile of tax filers, whereas only one of every seven single or non-joint tax filers fall in the top 20-percent category. Consequently,​ even as married couples file less than half of all income-tax returns, they pay nearly three-quarters of all income taxes paid by the American people. In fact, 85 percent of filers in the top-income quintile are married joint filers. The numbers reverse themselves at the bottom quintile of the income spectrum, where single and non-joint filers, including single parents (who file as heads of households),​ make up 85 percent of filers of that quintile.((Scott A. Hodge, “Married Couples File Less Than Half of All Tax Returns, But Pay 74 percent of All Income Taxes,” //Tax Foundation Fiscal Fact// no. 4, March 25, 2003.)) Census data likewise confirm that married parents fall into the highest income brackets. In 2006, 67 percent of married-parent families had median incomes of more than $50,000 and 30 percent of such families had median incomes of more than $100,000. In comparison, only 26 percent of single mothers had median incomes of more than $50,000; in fact, 59 percent of single mothers had median incomes of less than $35,​000.((U.S. Census Bureau, //​Statistical Abstract of the United States// (2009): Table 676.)) According to Internal Revenue Service data, the reported income of more than one out of every three married couples places them in the top-income quintile of tax filers, whereas only one of every seven single or non-joint tax filers fall in the top 20-percent category. Consequently,​ even as married couples file less than half of all income-tax returns, they pay nearly three-quarters of all income taxes paid by the American people. In fact, 85 percent of filers in the top-income quintile are married joint filers. The numbers reverse themselves at the bottom quintile of the income spectrum, where single and non-joint filers, including single parents (who file as heads of households),​ make up 85 percent of filers of that quintile.((Scott A. Hodge, “Married Couples File Less Than Half of All Tax Returns, But Pay 74 percent of All Income Taxes,” //Tax Foundation Fiscal Fact// no. 4, March 25, 2003.))
  
-Furthermore,​ [[comparative_advantage_of_married_couples|married households]] have the highest income-to-needs ratio.((Richard W. Johnson and Melissa M. Favreault, “Economic Status in Later Life among Women Who Raised Children Outside of Marriage,​” //Journal of Gerontology//​ 59B, no. 6 (2004): S319. As cited in Patrick F. Fagan, Andrew J. Kidd, and Henry Potrykus, “Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage,​” (May 2011). Available at [[http://​marri.frc.org/get.cfm?​i=RS11E03]]  +Furthermore,​ [[comparative_advantage_of_married_couples|married households]] have the highest income-to-needs ratio.((Richard W. Johnson and Melissa M. Favreault, “Economic Status in Later Life among Women Who Raised Children Outside of Marriage,​” //Journal of Gerontology//​ 59B, no. 6 (2004): S319. As cited in Patrick F. Fagan, Andrew J. Kidd, and Henry Potrykus, “Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage,​” (May 2011). Available at [[http://​marri.us/​research/​research-papers/​marriage-and-economic-well-being-the-economy-of-the-family-rises-or-falls-with-marriage/]]  
-\\ Sarah Avellar and Pamela J. Smock, “The Economic Consequences of the Dissolution of Cohabiting Unions,” //Journal of Marriage and Family// 67, no. 2 (May 2005): 315-327. As cited by The Heritage Foundation: Family Facts. Available at [[http://​www.familyfacts.org/​briefs/​31/​family-structure-and-economic-well-being]]. Accessed 20 July 2011.)) Men enjoy a larger “wage premium” (the financial gain men enjoy when they join a female partner) when they marry rather than cohabit.((Phillip Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 354.)) Overall, the [[effects_of_marriage_on_workforce_participation|marriage premium]] produces an annual income increase of approximately .9 percent for men.((George A. Akerlof, “Men Without Children,​” //The Economic Journal// 108, (1998): 287-309. As cited in Pat Fagan, Henry Potrykus, and Rob Schwarzwalder,​ “Our Fiscal Crisis: We Cannot Tax, Spend and Borrow Enough to Substitute for Marriage,​” (June 2011). Available at [[http://microsite.frc.org/get.cfm?​i=OR12A01]].  ​+\\ Sarah Avellar and Pamela J. Smock, “The Economic Consequences of the Dissolution of Cohabiting Unions,” //Journal of Marriage and Family// 67, no. 2 (May 2005): 315-327. As cited by The Heritage Foundation: Family Facts. Available at [[http://​www.familyfacts.org/​briefs/​31/​family-structure-and-economic-well-being]]. Accessed 20 July 2011.)) Men enjoy a larger “wage premium” (the financial gain men enjoy when they join a female partner) when they marry rather than cohabit.((Phillip Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 354.)) Overall, the [[effects_of_marriage_on_workforce_participation|marriage premium]] produces an annual income increase of approximately .9 percent for men.((George A. Akerlof, “Men Without Children,​” //The Economic Journal// 108, (1998): 287-309. As cited in Pat Fagan, Henry Potrykus, and Rob Schwarzwalder,​ “Our Fiscal Crisis: We Cannot Tax, Spend and Borrow Enough to Substitute for Marriage,​” (June 2011). Available at [[http://marri.us/​research/​research-papers/​our-fiscal-crisis/​]].  ​
 \\ See also Kate Antonovics and Robert Town, “Are All the Good Men Married? Uncovering the Sources of the Marital Wage Premium,” //American Economic Review// 94, no. 2 (2004): 317-321 \\ See also Kate Antonovics and Robert Town, “Are All the Good Men Married? Uncovering the Sources of the Marital Wage Premium,” //American Economic Review// 94, no. 2 (2004): 317-321
 \\ Philip N. Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 356 \\ Philip N. Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 356
 \\ Daniela Casale, “The Male Marital Earnings Premium in the Context of Bridewealth Payments: Evidence from South Africa,” //Economic Development and Cultural Change// 58, no. 2 (2010): 219 \\ Daniela Casale, “The Male Marital Earnings Premium in the Context of Bridewealth Payments: Evidence from South Africa,” //Economic Development and Cultural Change// 58, no. 2 (2010): 219
-\\ Robert F. Schoeni, “Marital Status and Earnings in Developed Countries,​” //Journal of Population Economics// 8, no. 4 (November 1995): 357. All as cited in Patrick F. Fagan, Andrew J. Kidd, and Henry Potrykus, “Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage,​” (May 2011). Available at [[http://​marri.frc.org/get.cfm?​i=RS11E03]].  ​+\\ Robert F. Schoeni, “Marital Status and Earnings in Developed Countries,​” //Journal of Population Economics// 8, no. 4 (November 1995): 357. All as cited in Patrick F. Fagan, Andrew J. Kidd, and Henry Potrykus, “Marriage and Economic Well-Being: The Economy of the Family Rises or Falls with Marriage,​” (May 2011). Available at [[http://​marri.us/​research/​research-papers/​marriage-and-economic-well-being-the-economy-of-the-family-rises-or-falls-with-marriage/​]].  ​
 \\ Phillip Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 354.  \\ Phillip Cohen, “Cohabitation and the Declining Marriage Premium for Men,” //Work and Occupations//​ 29, no. 3 (2002): 354. 
 \\ Sanders Korenman and David Neumark, “Does Marriage Really Make Men More Productive?​” //Journal of Human Resources// 26, (1990): 282-307. ​ \\ Sanders Korenman and David Neumark, “Does Marriage Really Make Men More Productive?​” //Journal of Human Resources// 26, (1990): 282-307. ​
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 =====5. Impact on Children== =====5. Impact on Children==
  
-Marriage among the very poor helps them [[effects_of_marriage_on_child_poverty|leave poverty]] and keep their children from entering the “low-income state.”((Garnett Picot, Myles Zyblock, and Wendy Piper, “Why do Children Move Into and Out of Low Income: Changing Labour Market Conditions or Marriage or Divorce?” //​Statistics Canada//, Analytical Studies Branch working paper (1999): 15. +Brad Wilcox, Joseph Price, and Robert Lerman found that states in the top quintile of married parenthood have a 13.2 percent lower rate of child poverty than states in the bottom quintile.((W. Bradford Wilcox, Joseph Price, and Robert I. Lerman, "​Strong Families, Prosperous States: Do Healthy Families Affect the Wealth of Nations?",​ The American Enterprise Institute (2015), available at [[https://​www.aei.org/​wp-content/​uploads/​2015/​10/​IFS-HomeEconReport-2015-FinalWeb.pdf]].)) They also determined that parents'​ marriage strongly predicts economic mobility ((W. Bradford Wilcox, Joseph Price, and Robert I. Lerman, "​Strong Families, Prosperous States: Do Healthy Families Affect the Wealth of Nations?",​ The American Enterprise Institute (2015), available at [[https://​www.aei.org/​wp-content/​uploads/​2015/​10/​IFS-HomeEconReport-2015-FinalWeb.pdf]]. \\ Thomas DeLeire and Leonard M. Lopoo, //Family Structure and the Economic Mobility of Children, Economic Mobility Project//, (2010). Available at [[http://​www.economicmobility.org/​assets/​pdfs/​Family_Structure.pdf]]. Accessed on 14 March 2011, 11.)) Marriage among the very poor helps them [[effects_of_marriage_on_child_poverty|leave poverty]] and keep their children from entering the “low-income state.”((Garnett Picot, Myles Zyblock, and Wendy Piper, “Why do Children Move Into and Out of Low Income: Changing Labour Market Conditions or Marriage or Divorce?” //​Statistics Canada//, Analytical Studies Branch working paper (1999): 15. 
-\\ Timothy J. Biblarz and Adrian E. Raftery, “The Effects of Family Disruption on Social Mobility,​” //American Sociological Review// 58, no. 1 (February 1993): 105.))+\\ Timothy J. Biblarz and Adrian E. Raftery, “The Effects of Family Disruption on Social Mobility,​” //American Sociological Review// 58, no. 1 (February 1993): 105.)) ​
  
-The children of married parents enjoy relatively [[effects_of_family_structure_on_the_economy|strong upward mobility]] (significantly more than the children of divorced parents).((Thomas DeLeire and Leonard M. Lopoo, //Family Structure and the Economic Mobility of Children, Economic Mobility Project//, (2010). Available at [[http://​www.economicmobility.org/​assets/​pdfs/​Family_Structure.pdf]]. Accessed on 14 March 2011, 11.)) Fifty-four percent of children born to always-married mothers whose earnings are in the top third of the income distribution will themselves (as adults) earn incomes in the top third of the income distribution. Half of children born to always-married mothers who earn incomes in the bottom third of the income distribution will themselves earn an income within that income bracket. Fifteen percent will earn an income in top third of the income distribution as adults.((Thomas DeLeire and Leonard M. Lopoo, //Family Structure and the Economic Mobility of Children, Economic Mobility Project//, (2010). Available from [[http://​www.economicmobility.org/​assets/​pdfs/​Family_Structure.pdf]],​ Accessed on 14 March 2011, 11.+Fifty-four percent of children born to always-married mothers whose earnings are in the top third of the income distribution will themselves (as adults) earn incomes in the top third of the income distribution. Half of children born to always-married mothers who earn incomes in the bottom third of the income distribution will themselves earn an income within that income bracket. Fifteen percent will earn an income in top third of the income distribution as adults.((Thomas DeLeire and Leonard M. Lopoo, //Family Structure and the Economic Mobility of Children, Economic Mobility Project//, (2010). Available from [[http://​www.economicmobility.org/​assets/​pdfs/​Family_Structure.pdf]],​ Accessed on 14 March 2011, 11.)) Patrick Fagan and Nicholas Zill have shown that family intactness has a significant effect of a range of child outcomes ((Patrick Fagan and Nicholas Zill, "Index of Family Belonging and Rejection: State by State,"​ The Marriage and Religion Research Institute (2015) available at [[http://​marri.us/​research/​research-papers/​index-of-belonging-and-rejection-state-by-state/​]].
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-This entry draws heavily from [[http://downloads.frc.org/EF/EF12D58.pdf|Marriage and Economic Well Being: The Economy Rises or Falls with Marriage]], [[http://​familyinamerica.org/​files/​4313/​8783/​1095/​FIA_Spring10_Fagan.pdf|The Family GDP: How Marriage and Fertility Drive the Economy]], and [[http://​www.heritage.org/​research/​reports/​1999/​06/​broken-families-rob-children-of-their-chances-for-future-prosperity|How Broken Families Rob Children of their Chance for Future Prosperity]].))+This entry draws heavily from [[http://marri.us/research/​research-papers/​marriage-and-economic-well-being-the-economy-of-the-family-rises-or-falls-with-marriage/|Marriage and Economic Well Being: The Economy Rises or Falls with Marriage]], [[http://​familyinamerica.org/​files/​4313/​8783/​1095/​FIA_Spring10_Fagan.pdf|The Family GDP: How Marriage and Fertility Drive the Economy]], and [[http://​www.heritage.org/​research/​reports/​1999/​06/​broken-families-rob-children-of-their-chances-for-future-prosperity|How Broken Families Rob Children of their Chance for Future Prosperity]].))