Husband's Unemployment and Wife's Labor Supply: The Added Worker Effect across Europe

Julia Bredtmann, Sebastian Otten and Christian Rulff

No 11087, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the responsiveness of women's labor supply to their husband's job loss – the so-called added worker effect. We contribute to the literature by taking an explicit internationally comparative perspective and analyze the variation of the added worker effect across welfare regimes. Using longitudinal data from the European Union Statistics on Income and Living Conditions (EU-SILC) covering 28 European countries from 2004 to 2013, we find evidence for the existence of an added worker effect. However, our results also reveal that the added worker effect varies over both the business cycle and the different welfare regimes within Europe.

Keywords: added worker effect; labor supply; unemployment; cross-country analysis (search for similar items in EconPapers)
JEL-codes: J22 J64 J82 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2017-10
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Forthcoming - published in: Industrial and Labor Relations Review, 2018, 71 (5), 1201-1231

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Related works:
Working Paper: Husband’s Unemployment and Wife’s Labor Supply – The Added Worker Effect across Europe (2014)
Working Paper: Husband's Unemployment and Wife's Labor Supply – The Added Worker Effect across Europe (2014)
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