Power couples, cities, and wages

Abstract

Power couples, defined as pairs of highly educated partners, tend to cluster in cities to take advantage of more developed labor markets, better jobs, and higher wages. This research examines to what extent being a partner in a power couple brings additional wage income benefits. We examine what the effects of power couple partnering is on wage income. Furthermore, we examine how the results are affected by gender and place of residence. To determine this, the research uses detailed Swedish micro data on power couples 23–39 years of age over the period 2007–2016. Our analysis finds positive and significant results from being in a power couple on wage income after controlling for individual, workplace, and geographical characteristics. This is the case for both men and women in power couple households without children, but for women only when children are present. For power couples in denser urban areas, we find a positive effect for men in power couples with or without children. We suggest this effect is due to a more equal “balance of power” between partners in highly educated power couples located in bigger cities, where norms and values may favor a relatively greater sharing of household duties between men and women, and where men face a different competitive situation in the labor market.