Family Job Search and Wealth: The Added Worker Effect Revisited

Silvio Rendon and J. Ignacio García-Pérez
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J. Ignacio García-Pérez: Universidad Pablo de Olavide
Authors registered in the RePEc Author Service: J. Ignacio García Pérez (jigarper@upo.es)

No 503, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: We develop and estimate a model of family job search and wealth accumulation. Individuals' job finding and job separations depend on their partners' job turnover and wages as well as common wealth. We fit this model to data from the Survey of Income and Program Participation (SIPP). This dataset reveals a very asymmetric labor market for household members, who share that their job finding is stimulated by their partners' job separation, particularly during economic downturns. We uncover a job search-theoretic basis for this added worker effect. We also show that this effect is robust to having more children in the household, but that this effect and the interdependency between household members is underestimated if wealth and savings are not considered. Moreover, our analysis shows that the policy goal of supporting job search by increasing unemployment transfers is partially offset by the partner's cross-effect in lower unemployment and wages.

Date: 2018
New Economics Papers: this item is included in nep-dem and nep-dge
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Family job search and wealth: The added worker effect revisited (2020)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2020)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2016)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2016)
Working Paper: Family Job Search and Wealth: The Added Worker Effect Revisited (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed018:503

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