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Job Displacement, Family Dynamics, and Spousal Labor Supply, CEPR Discussion Papers, No. 13247

Halla, Martin and Schmieder, Julia and Weber, Andrea (2018) Job Displacement, Family Dynamics, and Spousal Labor Supply, CEPR Discussion Papers, No. 13247. Centre for Economic Policy Research, London.

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Abstract

We study the effectiveness of intra-household insurance among married couples when the husband loses his job due to a mass layoff or plant closure. Empirical results based on Austrian administrative data show that husbands suffer persistent employment and earnings losses, while wives' labor supply increases moderately due to extensive margin responses. Wives' earnings gains recover only a tiny fraction of the household income loss and, in the short-term, public transfers and taxes are a more important form of insurance. We show that the presence of children in the household is a crucial determinant of the wives' labor supply response.

Item Type: Paper
Additional Information: We gratefully acknowledge financial support from the German Research Foundation within its priority program 1764: The German Labor Market in a Globalized World.
Keywords: Firm Events, Household Labor Supply, Intra-household Insurance, Added Worker Effect
Classification Codes: JEL D19, J22, J6
Divisions: Departments > Volkswirtschaft > Arbeitsmarkttheorie und -politik
Depositing User: Julia Schmieder
Date Deposited: 29 Oct 2018 09:42
Last Modified: 29 Oct 2018 15:45
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/87426/
URI: http://epub.wu.ac.at/id/eprint/6609

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