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Does the Added Worker Effect Matter?

Nezih Guner (), Yuliy Kulikova and Arnau Valladares Esteban
Authors registered in the RePEc Author Service: Arnau Valladares-Esteban

No 14346, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The added worker effect (AWE) measures the entry of individuals into the labor force due to their partners' job loss. We propose a new method to calculate the AWE, which allows us to estimate its effect on any labor market outcome. We show that without the AWE reduces the fraction of households with two non-employed members. The AWE also accounts for why women's employment is less cyclical and symmetric compared to men. In recessions, while some women lose their employment, others enter the labor market and find jobs. This keeps the female employment relatively stable.

Keywords: Cyclicality; female employment; Household Labor Supply; Intra-household Insurance; Skewness (search for similar items in EconPapers)
JEL-codes: D1 E32 J21 J22 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-dem, nep-ias and nep-mac
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Working Paper: Does the added worker effect matter? (2021) Downloads
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