Added Worker Effects in Canada: The Effect of Spousal Job Loss on Transitions into Employment

Ana Ferrer, Yazhuo (Annie) Pan and Tammy Schirle

Canadian Public Policy, 2025, vol. 51, issue 1, 16-34

Abstract: We examine added worker effects in Canada using the Labour Force Survey. At the extensive margin, we find that married women who are not employed are more likely to enter employment the month after a spouse has lost a job. Spousal job loss does not affect women's transition into employment in later months, and there are no significant effects for men. The effects do not appear to represent a behavioural response to an exogenous or unexpected spousal layoff. Rather, the women most likely to move in and out of employment have spouses who are more likely to experience a layoff that the family might anticipate, and they are prepared to respond. The added worker effect is stronger for more educated women, for homeowners, and when spouses' wages are higher. At the intensive margin, we do not see significant changes in hours worked among employed persons when their spouse loses a job.

Keywords: employment; job loss; family (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.3138/cpp.2024-012 (text/html)
access restricted to subscribers

Related works:
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:cpp:issued:v:51:y:2025:i:1:p:16-34

Ordering information: This journal article can be ordered from
https://www.utpjournals.com/loi/cpp/

Access Statistics for this article

Canadian Public Policy is currently edited by Prof. Mike Veall

More articles in Canadian Public Policy from University of Toronto Press University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8.
Bibliographic data for series maintained by Iver Chong ( this e-mail address is bad, please contact ).