Job Displacement, Family Dynamics and Spousal Labor Supply

Halla, Martin; Schmieder, Julia; Wéber, Andrea

doi:10.2139/ssrn.3249866

Cited by 3 publications

(3 citation statements)

References 11 publications

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“…Here, we find no evidence that women are more likely to enter or stay in the labour force in response to shocks affecting their male partners (irrespective of whether young children are present in the household). Our finding of limited added worker effects among women partners is consistent with some other studies (Goux et al (2014); Halla et al (2020)). By contrast, we find that, in households where women are exposed to import competition, their male partners increase labour force participation.…”

Section: Introductionsupporting

confidence: 92%

“…We also contribute to the more general empirical literature on added worker effects, which studies spousal labour supply responses to labour demand shocks affecting their partners. Prior work has found mixed results and tended to focus on employment responses for women (Layard et al, 1980;Heckman & Macurdy, 1980, 1982Lundberg, 1985;Maloney, 1987Maloney, , 1991Spletzer, 1997;Cullen & Gruber, 2000;Halla et al, 2020). In a cross-country comparison, Bredtmann et al (2018) show that the existence and the magnitude of added worker effects vary over the different welfare regimes within Europe.…”

Section: Introductionmentioning

confidence: 99%

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Household Responses to Trade Shocks

2023

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Section: Introductionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Household Responses to Trade Shocks

2023

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“…Here, we fnd no evidence that women are more likely to enter or stay in the labour force in response to shocks affecting their male partners (irrespective of whether young children are present in the household). Our fnding of limited added worker effects among women partners is consistent with some other studies (Goux et al (2014); Halla et al (2020)). By contrast, we fnd that, in households where women are exposed to import competition, their male partners increase labour force participation.…”

Section: Introductionsupporting

confidence: 91%

Household Responses to Trade Shocks

Levell¹,

Parey²,

Irastorza-Fadrique³

2023

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We use large-scale panel data from linked decadal censuses in England and Wales to study the responses of both individuals and their partners to rising Chinese import competition in the 2000s. We test whether partners provide insurance against lost household earnings by increasing labour supply. We fnd that both own and partner responses to the shock vary signifcantly by gender. Men in households exposed to import competition respond by increasing labour force participation at older ages, and by moving into solo self-employment. This is true both in response to their own trade exposure, and as an 'added worker effect' when their partner is exposed to the shock. By contrast, we fnd no such response for women, who do not increase labour supply if their male partners were initially employed in exposed industries. In general, self-employment appears to act as an employment buffer for men but not women. The impacts of import competition on partnering and family dissolution also differ according to the gender of those affected: for women below 45, but not men, exposure to the trade shock reduces the likelihood of divorce and of living with a new partner. Overall, our fndings underscore the importance of investigating household responses, and the self-employment margin, to fully understand the effects of trade shocks.

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Who Buffers Income Losses after Job Displacement? The Role of Alternative Income Sources, the Family, and the State

Fackler

Weigt

2019

Labour

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Using survey data from the German Socio‐Economic Panel (SOEP), this paper analyses the extent to which alternative income sources, reactions within the household context, and redistribution by the state attenuate earnings losses after job displacement. Applying propensity score matching and fixed effects estimations, we find that income from self‐employment reduces the earnings gap only slightly and severance payments buffer losses in the short run. On the household level, we find little evidence for an added worker effect whereas redistribution by the state within the tax and transfer system mitigates income losses substantially.

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Job Displacement, Family Dynamics and Spousal Labor Supply

Cited by 3 publications

References 11 publications

Household Responses to Trade Shocks

Household Responses to Trade Shocks

Household Responses to Trade Shocks

Who Buffers Income Losses after Job Displacement? The Role of Alternative Income Sources, the Family, and the State

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