The rise of the added worker effect

Jochen Mankart and Rigas Oikonomou

Economics Letters, 2016, vol. 143, issue C, 48-51

Abstract: We document that the added worker effect (AWE) has increased over the last three decades. We develop a search model with two earner households and we illustrate that the increase in the AWE from the 1980s to the 2000s can be explained through (i) the narrowing of the gender pay gap, (ii) changes in the frictions in the labor market and (iii) changes in the labor force participation costs of married women.

Keywords: Heterogeneous agents; Family self insurance; Dual earner; Unemployment; Labor market search (search for similar items in EconPapers)
JEL-codes: E24 J12 J64 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:48-51

DOI: 10.1016/j.econlet.2016.03.019

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