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

51 Pages Posted: 23 Oct 2017

See all articles by Julia Bredtmann

Julia Bredtmann

RWI – Leibniz Institute for Economic Research; IZA; University College London - CReAM - Centre for Research and Analysis of Migration

Sebastian Otten

University College London - CReAM - Centre for Research and Analysis of Migration; Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Christian Rulff

Ruhr University Bochum

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Abstract

This paper investigates the responsiveness of women's labor supply to their husband's job loss – the so-called added worker effect. We contribute to the literature by taking an explicit internationally comparative perspective and analyze the variation of the added worker effect across welfare regimes. Using longitudinal data from the European Union Statistics on Income and Living Conditions (EU-SILC) covering 28 European countries from 2004 to 2013, we find evidence for the existence of an added worker effect. However, our results also reveal that the added worker effect varies over both the business cycle and the different welfare regimes within Europe.

Keywords: added worker effect, labor supply, unemployment, cross-country analysis

JEL Classification: J22, J64, J82

Suggested Citation

Bredtmann, Julia and Otten, Sebastian and Rulff, Christian, Husband's Unemployment and Wife's Labor Supply: The Added Worker Effect Across Europe. IZA Discussion Paper No. 11087, Available at SSRN: https://ssrn.com/abstract=3056625

Julia Bredtmann (Contact Author)

RWI – Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

IZA

University College London - CReAM - Centre for Research and Analysis of Migration

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

Sebastian Otten

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, DE 45128
Germany

Christian Rulff

Ruhr University Bochum ( email )

Department of Economics
Universitätsstraße 150
Bochum, 44801
Germany

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