Displacement and household adaptation: insured by the spouse or the state?
We investigate the added worker effect in a setting where female labour supply is high and the welfare state is generous. We trace couples' labour supply and income development following the husband's job displacement. We find no support for the added worker effect for the full sample of h...
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| Veröffentlicht in: | Journal of population economics 2014-07, Vol.27 (3), p.683-703 |
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| container_title | Journal of population economics |
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| creator | Hardoy, Inés Schøne, Pål |
| description | We investigate the added worker effect in a setting where female labour supply is high and the welfare state is generous. We trace couples' labour supply and income development following the husband's job displacement. We find no support for the added worker effect for the full sample of households. However, the added worker effect seems to be at work for subsamples characterised by households where the spouses are not working in the same industry and where the wife did not work full time pre-displacement. When using a measure of total household income, which includes public transfers, we find that the negative income impact of displacement is reduced by approximately 60 to 70 % when we also adjust for lower tax payments. Results suggest that income loss due to displacement is mitigated more by social welfare payments than by labour supply responses of the spouse. |
| doi_str_mv | 10.1007/s00148-013-0469-5 |
| format | Article |
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We trace couples' labour supply and income development following the husband's job displacement. We find no support for the added worker effect for the full sample of households. However, the added worker effect seems to be at work for subsamples characterised by households where the spouses are not working in the same industry and where the wife did not work full time pre-displacement. When using a measure of total household income, which includes public transfers, we find that the negative income impact of displacement is reduced by approximately 60 to 70 % when we also adjust for lower tax payments. Results suggest that income loss due to displacement is mitigated more by social welfare payments than by labour supply responses of the spouse.</description><subject>Couples</subject><subject>Demography</subject><subject>Displaced workers</subject><subject>Displacement</subject><subject>Economic models</subject><subject>Economic statistics</subject><subject>Economic theory</subject><subject>Economics</subject><subject>Economics and Finance</subject><subject>Employment</subject><subject>Family income</subject><subject>Females</subject><subject>Household income</subject><subject>Households</subject><subject>Husbands</subject><subject>Income</subject><subject>Labor</subject><subject>Labor Economics</subject><subject>Labor force</subject><subject>Labor market</subject><subject>Labor markets</subject><subject>Labor supply</subject><subject>Labour supply</subject><subject>Original Paper</subject><subject>Payments</subject><subject>Population</subject><subject>Population 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| subjects | Couples Demography Displaced workers Displacement Economic models Economic statistics Economic theory Economics Economics and Finance Employment Family income Females Household income Households Husbands Income Labor Labor Economics Labor force Labor market Labor markets Labor supply Labour supply Original Paper Payments Population Population Economics Risk sharing Social Policy Spouses Studies Unemployment Unemployment insurance Wages Wages & salaries Welfare state Wives |
| title | Displacement and household adaptation: insured by the spouse or the state? |
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