Job Loss and Household Labor Supply Adjustments in Developing Countries

Using longitudinal data for Argentina, this paper estimates the labor supply reaction of spouses and children, as well as the interactions between them, following the job loss of their husband or father. The findings show that job loss by the household head has a positive and significant impact on t...

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Veröffentlicht in:The World Bank Economic Review 2024-01
Hauptverfasser: Ciaschi, Matias, Guido Neidhofer
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description Using longitudinal data for Argentina, this paper estimates the labor supply reaction of spouses and children, as well as the interactions between them, following the job loss of their husband or father. The findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it increases the likelihood of spouses to switch to informal and downgraded employment, and of children to drop out from education. While effects are stronger among vulnerable households, coverage of social security does not provide enough support in coping with unemployment shocks. Mothers’ labor participation, however, may allow their daughters to continue their education.
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identifier DOI: 10.1093/wber/lhad041
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subjects DECENT WORK AND ECONOMIC GROWTH
EDUCATIONAL DROP-OUT
EDUCATIONAL ENROLLMENT
FEMALE LABOR PARTICIPATION
GENDER EQUALITY
HUMAN CAPITAL FORMATION
IDIOSYNCRATIC SHOCKS
JOB LOSS
LABOR SUPPLY
QUALITY EDUCATION
SDG 4
SDG 5
SDG 8
title Job Loss and Household Labor Supply Adjustments in Developing Countries
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