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Job Displacement, Family Dynamic, and Spousal Labor Supply

Andrea Weber, Martin Halla and Julia Schmieder

No 13247, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the effectiveness of intra-household 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.

Keywords: Firm events; Household labor supply; Intra-household insurance; Added worker effect (search for similar items in EconPapers)
JEL-codes: D19 J22 J6 (search for similar items in EconPapers)
Date: 2018-10
New Economics Papers: this item is included in nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Job Displacement, Family Dynamics, and Spousal Labor Supply (2020) Downloads
Working Paper: Job Displacement, Family Dynamics and Spousal Labor Supply (2018) Downloads
Working Paper: Job Displacement, Family Dynamics and Spousal Labor Supply (2018) Downloads
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