Getting back into work after job loss: the role of partner effects
Mark Bryan () and
Simonetta Longhi ()
No 2015-11, ISER Working Paper Series from Institute for Social and Economic Research
We investigate the reaction of couples to a job loss during periods of growth and recession in the UK focussing on re-employment of the spouse who lost their job. Re-employment was faster for those with a partner in work, but was not generally affected by other measures of the partnerâ€™s labour market attachment or resources. For men, the strongest partner effects were for entry into high quality jobs; and having a working partner substantially mitigated the negative impact of the recession on entry into these jobs. For women, an employed partner was associated with a greater likelihood of re-entry into any type of job. Hence, while dual earner families may be able to restore the pre-job loss income level, single earner families are more likely to be trapped in cycles of low-quality jobs and no jobs leading to a decrease in household income over time. The difference in outcomes between single and dual earner couples is likely to increase during recessions.
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