Partner’s income shock and female labor supply. Evidence from the repeal of Argentina’s convertibility law

Laurine Martinoty ()
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Laurine Martinoty: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Female employment is an important vector of economic development. Using data on couples in urban Argentina from 1996 to 2007, I show that in the short and medium term necessity shapes female participation and employment at the extensive and intensive margins. More specifically, I study how women's labor supply reacts to negative income shocks affecting their partner. In order to assess the causal impact, I exploit the unexpected evolution of the economic environment triggered by the repeal of the convertibility law in January 2002 to instrument men's job loss. I find that women's probability of participating and finding a job is multiplied by 2 upon their partner's displacement. Turning to the dynamics of their labor supply, contrary to expectations, however, women do not symmetrically withdraw from the labor market once their partner finds a job. Evidence on repeated cross-sections confirms that the labor supply response persists long after the economic recovery. My findings are among the first attempts to evaluate the participation effects of temporary shocks in the medium term.

Keywords: female labor force; female employment; intra-household allocation; Gender; participation des femmes au marché du travail; Emploi des femmes; Allocation intra-familiale; Allocation intra-ménage; Genre (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-gen
Note: View the original document on HAL open archive server: https://hal.science/hal-03767916
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Published in World Development, 2022, 159, pp.106039. ⟨10.1016/j.worlddev.2022.106039⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-03767916

DOI: 10.1016/j.worlddev.2022.106039

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