Relative income within the household, gender norms, and well-being

Abstract

This study examines the effects of relative household income on individual well-being, mental health, and physical health in Germany. Consistent with previous studies, we document a dip in the distribution of households in which the wife out-earns the husband. Using a regression discontinuity design, we show that husbands in couples in which the wife earns just more exhibit lower satisfaction with life, work, and health, and report worse physical health. Women in these couples report lower satisfaction with life and health, and worse mental health. Results on life, work, and health satisfaction among women are more pronounced in West Germany, consistent with previous evidence of gender norm differences between East and West Germany.