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Career Paths with a Two-Body Problem: Colocation and Gendered Professional Crossroads
Dual-career couples can struggle to balance career growth with finding a location that works for both spouses. We investigate how colocation constraints shape the careers of husbands and wives. We document empirically that, after relocating, wives tend to switch to less rewarding careers. Next, we build a parsimonious job search model in which colocation constraints force couples to sacrifice the career of one spouse. The model generates career switches both before and after relocating, as couples anticipate future career prospects. Replicating the stylised facts, the calibrated model shows that colocation constraints amplify gender gaps in careers.
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