Family Job Search and Wealth: The Added Worker Effect Revisited

J. Ignacio Garcia-Perez and Silvio Rendon
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

No 16-34, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: We develop and estimate a model of family job search and wealth accumulation. Individuals' job finding and job separations depend on their partners' job turnover and wages as well as common wealth. We fit this model to data from the Survey of Income and Program Participation (SIPP). This dataset reveals a very asymmetric labor market for household members, who share that their job finding is stimulated by their partners' job separation, particularly during economic downturns. We uncover a job search-theoretic basis for this added worker effect and find that this effect is stronger with more children in the household. We also show that excluding wealth and savings from the analysis and estimation leads to underestimating the interdependency between household members. Our analysis shows that the policy goal of supporting job search by increasing unemployment transfers is partially offset by a partner's lower unemployment and wages.

Keywords: job search; asset accumulation; household economics; consumption; unemployment; estimation of dynamic structural models (search for similar items in EconPapers)
JEL-codes: C33 E21 E24 J64 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2016-12-13
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.philadelphiafed.org/-/media/frbp/asset ... ers/2016/wp16-34.pdf (application/pdf)

Related works:
Journal Article: Family job search and wealth: The added worker effect revisited (2020)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2020)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2018)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2016)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:16-34

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().