Does the Added Worker Effect Matter?

Nezih Guner, Yuliya Kulikova and Arnau Valladares-Esteban

No 12923, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 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 more 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: household labor supply; intra-household insurance; female employment; cyclicality; skewness (search for similar items in EconPapers)
JEL-codes: D1 E32 J21 J22 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2020-01
New Economics Papers: this item is included in nep-dem, nep-ias, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://docs.iza.org/dp12923.pdf (application/pdf)

Related works:
Journal Article: Does the Added Worker Effect Matter? (2025)
Working Paper: Does the Added Worker Effect Matter? (2024)
Working Paper: Does the added worker effect matter? (2021)
Working Paper: Does the Added Worker Effect Matter? (2020)
Working Paper: Does the Added Worker Effect Matter? (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp12923

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().