Labor Market Responses to Partners' Unemployment and Low-Pay Employment

Carina Keldenich and Andreas Knabe

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: This paper revisits the added worker effect. Using bivariate random-effects probit estimation on data from the German Socio-Economic Panel we show that women respond to their partners’ unemployment with an increase in labor market participation, which also leads to an increase in their employment probability. Our analysis considers within- and between-effects separately, revealing differences in the relationships between women’s labor market statuses and their partners’ unemployment in the previous period (within effect) and their partners’ overall probability of being unemployed (between-effect). Furthermore, we demonstrate that partners’ employment in low-paid jobs has an effect on women’s labor market choices and outcomes similar to that of his unemployment.

Keywords: Added Worker Effect; Labor Supply; Family Economics; Unemployment; Low-Pay Employment (search for similar items in EconPapers)
JEL-codes: D12 D13 J22 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur and nep-lma
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181558

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