Husband's Unemployment and Wife's Labor Supply The Added Worker Effect Across Europe

Abstract

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Couples' Labour Supply Responses to Job Loss: Growth and Recession Compared

“…This ‘reverse AWE’ in terms of employment is consistent with some previous studies of the UK which argue that the means‐tested benefit system makes work less attractive to the spouse of an unemployed partner because his benefits are reduced as her earnings increase (see McGinnity, for the UK and Bredtmann et al, for UK and Ireland combined). It may only be worth the woman working if she can earn enough to compensate for benefit reductions—so while her partner's job loss triggers an increase in search, it takes longer to find an acceptable job.…”

“…Like the US studies, Parker and Skoufias (), who compared the Mexican Peso crisis with a period of prosperity, also concluded that the AWE was stronger during a recession. Most recently, a cross‐country EU study by Bredtmann et al () found that the AWE was larger at higher levels of unemployment.…”

All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner

“…17 Moreover, we agree with the previous literature (e.g. Bredtmann et al 2014), that the AWE is hard to measure and that estimates could be confounded by unobserved partner characteristics or in our case assortative mating patterns that lead to a positive correlation of partners' shocks. We will therefore not include the regression results in section 5.…”

Hanging in, but only just: part-time employment and in-work poverty throughout the crisis

“…Added worker effects are expected to increase female labour supply in these circumstances. However, empirical evidence suggest that women tend to be highly limited from the demand side and are unable to materialize the job search activities (Bredtmann et al 2014). Therefore, the causes of the increase in involuntary part-time work should not merely be sought in individual precarious labour market situations of low pay or unstable employment but with the overall realization of the household work potential that enables workers to provide a decent living standard.…”