Quotation Schmieder, Julia. 2018. Job Displacement, Family Dynamic, and Spousal Labor Supply. Centre for Economic Policy Research Discussion Paper.




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.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Job Displacement, Family Dynamic, and Spousal Labor Supply
Title of whole publication Centre for Economic Policy Research Discussion Paper
Year 2018
URL https://cepr.org/active/publications/cite.php?Type=DP&Item=13247#Full
JEL D19, J22, J6


Schmieder, Julia (Former researcher)
Department of Economics (Kartal) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5323 Econometrics (Details)
5351 Public economy (Details)
5902 Labour market research (Details)
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