Job Loss and Household Labor Supply Adjustments in Developing Countries: Evidence from Argentina

Matías Ciaschi and Guido Neidhöfer

The World Bank Economic Review, 2024, vol. 38, issue 3, 558-579

Abstract: Using longitudinal data for Argentina, this paper estimates the labor supply reaction of spouses and children, as well as the interactions between them, following the job loss of their husband or father. The findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it increases the likelihood of spouses to switch to informal and downgraded employment, and of children to drop out from education. While effects are stronger among vulnerable households, coverage of social security does not provide enough support in coping with unemployment shocks. Mothers’ labor participation, however, may allow their daughters to continue their education.

Keywords: job loss; labor supply; female labor participation; educational enrollment; educational drop-out; human capital formation; idiosyncratic shocks (search for similar items in EconPapers)
Date: 2024
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Working Paper: Job loss and household labor supply adjustments in developing countries: Evidence from Argentina (2022)
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