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Labor market shocks and their impacts on work and schooling

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Author Info
Skoufias, Emmanual
Parker, Susan W.

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Abstract

The authors use individual observations from a panel of families during the period of the peso crisis in Mexico to investigate whether and how labor market shocks, as proxied by changes in the gender- and age-specific unemployment rates in the metropolitan area of the household, affect the intertemporal time allocation of adult members and children. Their findings suggest that significant added-worker effects are in operation, especially for adult females of poorer households and in some cases children. The same shocks also increase significantly the probability that children do not continue school in the next year. The paper also presents evidence suggesting differential treatment based on the sex of children within families.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND briefs with number 129.

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Date of creation: 2002
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Handle: RePEc:fpr:fcndbr:129

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Keywords: FCND Unemployment Mexico. Labor market Mexico. Urban economics. Economic situation. Insurance. Gender issues.

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  1. Skoufias, Emmanuel, 1996. "Intertemporal substitution in labor supply: Micro evidence from rural India," Journal of Development Economics, Elsevier, vol. 51(2), pages 217-237, December. [Downloadable!] (restricted)
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  3. Melvin Stephens Jr., 2001. "Worker Displacement and the Added Worker Effect," NBER Working Papers 8260, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-46, April. [Downloadable!] (restricted)
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  5. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, vol. 55(2), pages 465-481, April. [Downloadable!] (restricted)
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  6. Haurin, Donald R, 1989. "Women's Labor Market Reactions to Family Disruptions," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 54-61, February. [Downloadable!] (restricted)
  7. Ham, John C & Jacobs, Kris, 2000. "Testing for Full Insurance Using Exogenous Information," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(4), pages 387-97, October.
  8. Altug, Sumru & Miller, Robert A, 1990. "Household Choices in Equilibrium," Econometrica, Econometric Society, vol. 58(3), pages 543-70, May. [Downloadable!] (restricted)
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  9. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Blackwell Publishing, vol. 64(3), pages 311-35, July. [Downloadable!] (restricted)
  10. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier. [Downloadable!] (restricted)
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  11. Cochrane, John H, 1991. "A Simple Test of Consumption Insurance," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 957-76, October. [Downloadable!] (restricted)
  12. Jonathan Gruber & Julie Berry Cullen, 1996. "Spousal Labor Supply as Insurance: Does Unemployment Insurance Crowd Outthe Added Worker Effect?," NBER Working Papers 5608, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Duryea, S., 1998. "Children's Advancement Through School in Brazil: the Role of Transitory Shocks to Household Income," RES Working Papers 376, Inter-American Development Bank, Research Department.
  14. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-91, May. [Downloadable!] (restricted)
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  15. Duryea, S., 1998. "Children's Advancement Through School in Brazil: the Role of Transitory Shocks to Household Income," RES Working Papers 376, Inter-American Development Bank, Research Department.
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