Job Displacement, Family Dynamic, and Spousal Labor Supply

Julia Schmieder

Publication: Working/Discussion PaperWorking Paper/Preprint

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Abstract

We study the effectiveness of intra-household insurance among married couples when the husband loses his job due to a mass layoff or plant closure. Empirical results based on Austrian administrative data show that husbands suffer persistent employment and earnings losses, while wives' labor supply increases moderately due to extensive margin responses. Wives' earnings gains recover only a tiny fraction of the household income loss and, in the short-term, public transfers and taxes are a more important form of insurance. We show that the presence of children in the household is a crucial determinant of the wives' labor supply response.
Original languageEnglish
Publication statusPublished - 2018

Publication series

SeriesCEPR Discussion Paper
NumberDP13247
ISSN0265-8003

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502025 Econometrics
  • 502024 Public economy
  • 502001 Labour market policy

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