Relative labor supply in intermarriage

Abstract

Abstract Spouse’s relative labor supply and the degree of specialization in intermarriage might differ from that in immigrant and native marriage for several reasons. Intermarried couples may specialize less due to smaller comparative advantages resulting from positive assortative mating by education, and due to different bargaining positions within the household. The empirical analysis relies on panel data using a two limit Random Effects Tobit framework to identify determinants of a gender-neutral specialization index. Results indicate that for immigrants intermarriage is indeed related to less specialization, as is similar education levels of spouses, while children and being Muslim or Islamic are associated with greater specialization. For natives, on the other hand, the likelihood to specialize increases with intermarriage. This might result from differences in bargaining strength or be due to adaptation to immigrants’ gender roles. JEL classification J1, J12.