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Young people living as couples: How women's labour supply is adapting to the crisis. Spain as a case study

Tindara Addabbo (), Paula Rodríguez-Modroño () and Lina Gálvez-Muñoz

Economic Systems, 2015, vol. 39, issue 1, 27-42

Abstract: In this paper, we focus on the effects of the Great Recession on the decisions of young women regarding their labour supply. Considering the profound effect of the economic recession on the Spanish labour market, and in particular on the labour supply of young people, the focus of the empirical part of this paper is on Spain. Using EU-SILC 2007 and 2012 micro data for Spain, the labour supply models of women are estimated by age group, with a particular focus on the 20 to 29 and 30 to 39 age bands, in order to establish how young women living in couples exhibit different labour supply propensities according to their partner's labour market status. Correction is made for the non-random selection of women living in couples in the younger age groups. This first analytical step reveals a negative effect on the likelihood of forming a new household in the context of precarious employment conditions. Analytical results regarding the labour supply of women by age group confirmed a discouraging effect of young children on the labour supply of the youngest mothers, as well as a positive effect from being the owner of a house purchased under mortgage.

Keywords: Labour supply; Great recession; Gender; Added worker effect; Discouraged worker effect; Young people labour supply (search for similar items in EconPapers)
JEL-codes: J16 J21 J22 J64 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.ecosys.2014.10.003

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Handle: RePEc:eee:ecosys:v:39:y:2015:i:1:p:27-42