Gender identity, preference, and relative income within households

In this paper, we empirically study the impact of gender identity on wives' relative income within households in China and find that a husband's and a wife's traditional gender identity statistically significantly and negatively affect the wife's relative income in the household. The heterogeneous effects of gender identity for different residence types, education levels, and age groups are also studied. Supporting empirical evidence is explored for the preference mechanism that couples with traditional gender identities are more averse to having a wife who earns more than her husband. We also find that a husband earns less if the husband or the wife has a traditional gender identity. • Empirically study the impact of gender identity on wives' relative income within households in China • A husband's and a wife's traditional gender identity negatively affect the wife's relative income in the household • Couples with traditional gender identities are more averse to having a wife who earns more than her husband. • A husband with a traditional gender identity earns less for those in the labor market • A wife's gender identity has statistically significant impact on her husband's income.