Household Search and the Aggregate Labour Market

Mankart, Jochen; Oikonomou, Rigas

doi:10.1093/restud/rdw055

Cited by 27 publications

(33 citation statements)

References 65 publications

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“…This paper is closely related to Mankart and Oikonomou (2016a), who explain the acyclicality of the labor force participation rate in the United States by the countercyclicality of the labor force participation rate for married women. Similar to my paper, the authors argue that the addedworker effect is the driving force behind the countercyclicality of the labor force participation rate for married women.…”

Section: Related Literaturementioning

confidence: 88%

Cyclicality of Hours Worked by Married Women and Spousal Insurance

Ellieroth

2017

SSRN Journal

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I document that married women's hours worked are significantly less cyclical than hours worked by married men and singles and argue that spousal insurance contributes to the low cyclicality. Analyzing volatility, transition rates, and household behavior, I show that (i) married women experience the lowest cyclical volatility; (ii) their volatility depends more on past than current fluctuations of business cycle indicators; (iii) married women are less likely to become unemployed or leave the labor force during recessions, but not more likely to join the labor force; and (iv) unemployment of the husband is associated with more hours worked by the wife, particularly during recessions.

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Section: Related Literaturementioning

confidence: 88%

Cyclicality of Hours Worked by Married Women and Spousal Insurance

Ellieroth

2017

SSRN Journal

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“…Blundell, Pistaferri, and Saporta-Eksten (2016) show that family labor supply provides the dominant form of insurance against permanent wage shocks. Mankart and Oikonomou (2017) show both theoretically and empirically that a second earner is important in insuring against employment risk and macroeconomic downturns. A second income can assist with family financial stability for active-duty service members transitioning to National Guard or reserve status, being separated because of a disability or military downsizing, wanting or needing to leave the service for other reasons, and, in the long term, retiring (because most active-duty personnel must leave the service well before age 45, as qualification for the military retirement benefit begins after 20 years of service).…”

Section: Previous Literaturementioning

confidence: 98%

The Impact of a Spouse Incentive on Employee Retention: Evidence from a Military Spouse Scholarship

Knapp¹,

Marrone²,

Miller³

et al. 2019

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“…The last moment in Table is related to the added worker effect literature . We take the statistic from Mankart and Oikonomou (), who run a linear probability model using transition probabilities of married females from inactivity to either unemployment or employment as a dependent variable on a number of controls. Using data from the Panel Study of Income Dynamics, they find that the coefficient associated to an employment‐to‐unemployment transition of the husband is 0.076.…”

Section: Model Fitmentioning

confidence: 99%

“…This paper is also related to the literature that studies household interactions and frictions in the labor market. Mankart and Oikonomou () showed that a household search model can account for some regularities of the US data that cannot be replicated by single‐agent search models. Guler, Guvenen, and Violante () theoretically analyzed a McCall ()‐type search problem for a two‐member household, under different types of preferences.…”

Section: Introductionmentioning

confidence: 99%

On households and unemployment insurance

Choi

Valladares-Esteban

2020

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We study unemployment insurance in a framework where the main source of heterogeneity among agents is the type of household they live in: some agents live alone while others live with their spouses as a family. Our exercise is motivated by the fact that married individuals can rely on spousal income to smooth labor market shocks, while singles cannot. We extend a version of the standard incompletemarkets model to include two-agent households and calibrate it to the US economy with special emphasis on matching differences in labor market transitions across gender and marital status as well as aggregate wealth moments. Our central finding is that changes to the current unemployment insurance program are valued differently by married and single households. In particular, a more generous unemployment insurance reduces the welfare of married households significantly more than that of singles and vice versa. We show that this result is driven by the amount of self-insurance existing in married households, and thus, we highlight the interplay between self-and government-provided insurance and its implication for policy.

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Household Search and the Aggregate Labour Market

Cited by 27 publications

References 65 publications

Cyclicality of Hours Worked by Married Women and Spousal Insurance

Cyclicality of Hours Worked by Married Women and Spousal Insurance

The Impact of a Spouse Incentive on Employee Retention: Evidence from a Military Spouse Scholarship

On households and unemployment insurance

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