Job Displacement, Family Dynamics, and Spousal Labor Supply

Martin Halla, Julia Schmieder and Andrea Weber

American Economic Journal: Applied Economics, 2020, vol. 12, issue 4, 253-87

Abstract: We study the effectiveness of intrahousehold insurance among married couples when the husband loses his job due to a mass layoff or plant closure. Empirical results based on Austrian administrative data show that husbands suffer persistent employment and earnings losses, while wives' labor supply increases moderately due to extensive margin responses. Wives' earnings gains recover only a tiny fraction of the household income loss, and in the short-term, public transfers and taxes are a more important form of insurance. We show that the presence of children in the household is a crucial determinant of the wives' labor supply response.

JEL-codes: D13 J12 J16 J22 J31 J63 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (56)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/app.20180671 (application/pdf)
https://doi.org/10.3886/E112184V1 (text/html)
https://www.aeaweb.org/doi/10.1257/app.20180671.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/app.20180671.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Job Displacement, Family Dynamic, and Spousal Labor Supply (2018)
Working Paper: Job Displacement, Family Dynamics and Spousal Labor Supply (2018)
Working Paper: Job Displacement, Family Dynamics and Spousal Labor Supply (2018)
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:aea:aejapp:v:12:y:2020:i:4:p:253-87

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/app.20180671

Access Statistics for this article

American Economic Journal: Applied Economics is currently edited by Alexandre Mas

More articles in American Economic Journal: Applied Economics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().