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This leads me to conclude that the income is the reason for the wife not working, and not vice versa (although there is something to be said for the ability of the man whose wife doesn't work to be able to concentrate on making money less on domestic matters. This has been my own experience also

This sounds reasonable. Another factor may be that the sole breadwinner (mother or father) may feel extra motivation to advance and make more money.
In my case we figured out how to get by on one income but now that our son is here I'm really trying to find ways to improve our situation. I doubt that I would feel the same if my wife had continued to work.
Whatever the case I don't believe that most companies are inclined to give raises based on how many kids you have.
-g
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