Dyadic employment biographies and within‐couple wealth inequality in Britain and Western Germany

Abstract

Objective This study examines how the interplay of both partners' employment biographies is associated with the within‐couple gender wealth gap in later life in Britain and Western Germany, including married couples born between the 1920s and 1960s. Background Although it is well‐known that women own less personal wealth than their male partners on average, variation in the gender wealth gap across partners' employment constellations and contexts remains unaddressed. Following the life course paradigm, this study theorizes how individual wealth accumulation, within‐couple redistribution processes, and institutional arrangements shape the within‐couple gender wealth gap in later life. Method The analyses rely on retrospective employment and prospective survey data from Britain (UKHLS; Wave 8; 2016–2018) and Germany (SOEP, 2017). Sequence and cluster analyses detect patterns of dyadic employment biographies (ages 20–55) among different‐sex couples in their first marriage and OLS regressions associate them with the within‐couple gender wealth gap. Results The within‐couple gender wealth gap to the disadvantage of women existed in Britain and Western Germany, with considerably larger inequality in Germany. German male breadwinner couples, particularly those with longer periods of female homemaking and part‐time employment, showed higher levels of wealth inequality. Whereas dyadic employment biographies were not clearly associated with the gender wealth gap in Britain, stable arrangements of female full‐time employment reduced the gap in Germany. Conclusion A similar division of labor throughout the life course can result in different levels of the within‐couple gender wealth gap in later life across country contexts, particularly depending on the housing system.

Mine, yours, ours, or no one's? Homeownership arrangements among cohabiting and married couples

“…Lastly, in addition to their contribution to the literature on conjugal economic organization, results from this study extend research on within‐household and gender wealth inequality. As we noted, although developing, research on those topics is still rare (Frémeaux & Leturcq, 2020; Kapelle & Lersch, 2020; Nutz & Gritti, 2021; Nutz & Lersch, 2021; Schneebaum et al., 2018), and, in Canada, it is virtually inexistant. Our results provided some insights into how home equity is distributed between spouses in the province of Québec.…”

“…Those insights have prompted multiple scholars to call for more research on wealth (rather than just income) inequality, not only between households, but also within couples (Frémeaux & Leturcq, 2020; Killewald et al., 2017; Maroto, 2016; Saez & Zucman, 2016). Yet, only a few studies, coming from France, Germany, and the United Kingdom, were able to address that latter question (Kapelle & Lersch, 2020; Nutz & Gritti, 2022; Grabka et al., 2015; Bessière, 2022) because, in other countries, notably Canada, assets and debts are measured exclusively at the household level in national surveys, impeding research on within‐union disparities. In those contexts, exploring how couples handle ownership of their key assets offers an opportunity to help fill the gap, for jointly owning them will equalize wealth, while more independent and individualized arrangements may facilitate the growth of inequalities between spouses over time.…”

Who Opts Out? The Customisation of Marriage in the German Matrimonial Property Regime

“…Family law scholars therefore demand to reform the German default regime following the community of acquisitions, which is in place in many European countries and allows the legal participation in the spouse’s wealth already during marriage (Nake, 2013 ). This reform is especially relevant in light of the pronounced gender gap in individual wealth in Germany that is particularly strong in couples with gender-traditional employment arrangements (Grabka et al, 2015 ; Nutz & Gritti, 2021 ). Additional policies targeting misconceptions about matrimonial property regimes by providing information could further reduce these gender wealth inequalities during and after marriage.…”

My Wealth, (Y)Our Life Satisfaction? Sole and Joint Wealth Ownership and Life Satisfaction in Marriage

“…A growing body of research has highlighted that although family life provides a range of economic benefits, not all economic resources are fully pooled and shared within households (e.g. Bennett, 2013 ; Çineli, 2022 ; Joseph & Rowlingson, 2012 ; Nutz & Gritti, 2021 ). Although spouses and their economic and subjective well-being are inevitably linked, individuals also act independently from their spouses.…”

“…Germany’s strong institutional incentives for married couples to think jointly and for spouses to adopt a traditional division of labour are also reflected in comparatively gendered social norms (Aisenbrey & Fasang, 2017 ; Trappe et al, 2015 ). As a result, German women earn less labour market income and own less wealth than their husbands, often implying the lack of substantial independent resources for women (Grabka et al, 2015 ; Nutz & Gritti, 2021 ; Trappe & Sørensen, 2006 ).…”