Marriage and the economic status of women with children

Marriage is positively correlated with income, and women with children are much less likely to be in poverty if they are married. Selection into marriage makes it difficult to assess whether these correlations represent a causal effect of marriage. One instrument for marriage proposed in past research is the gender of a woman's first child. We find that women who have a boy first are about 0.33 percentage points more likely to be married at any point in time. This effect operates through both increasing the probability that unmarried mothers marry the child's father and reducing the probability of divorce. We also find that women whose first child is a boy experience higher levels of family income and are less likely to receive welfare income, be below the poverty line, and receive food stamps. Estimates using child gender as an instrumental variable for marriage suggest that marriage plays a large causal role in improving the economic well-being of women with children and that these effects are largest among women at the lower end of the income distribution.