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Marriage, Wealth, and Unemployment Duration: A Gender Asymmetry Puzzle

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  • Lentz, Rasmus

    ()
    (Boston University)

  • Tranæs, Torben

    ()
    (Rockwool Foundation Research Unit)

Abstract

This note presents evidence of the following gender asymmetry: the job-finding effort of married men and women is affected by the income of their spouses in opposite directions. For women, spouse income influences job finding negatively, just as own wealth does: the more the man earns and the wealthier the woman is, the longer it takes for her to find a job. The contrary is the case for men, where spouse income affects job finding positively: the more the wife earns, the faster the husband finds a job. This is so despite the fact that greater own wealth also prolongs unemployment spells for men. These findings are hard to reconcile with the traditional economic model of the family.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1607.

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Length: 16 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1607

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Keywords: gender asymmetries; wealth effects on job finding; unemployment duration;

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References

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  1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, Econometric Society, vol. 52(2), pages 271-320, March.
  2. Rasmus Lentz, 2009. "Optimal Unemployment Insurance in an Estimated Job Search Model with Savings," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 37-57, January.
  3. Svarer, Michael, . "Determinants of Divorce in Denmark," Economics Working Papers, School of Economics and Management, University of Aarhus 2002-19, School of Economics and Management, University of Aarhus.
  4. Hans Bloemen & Elena Stancanelli, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Sciences Po publications info:hdl:2441/9704, Sciences Po.
  5. Yann Algan & Arnaud Cheron & Jean-Olivier Hairault & Francois Langot, 2003. "Wealth Effect on Labor Market Transitions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(1), pages 156-178, January.
  6. John M. Abowd & Patrick Corbel & Francis Kramarz, 1996. "The Entry and Exit of Workers and the Growth of Employment: An Analysis of French Establishments," NBER Working Papers 5551, National Bureau of Economic Research, Inc.
  7. Weiss, Y. & Willis, R.J., 1995. "Match Quality, New Information and Marital Dissolution," Papers, Tel Aviv - the Sackler Institute of Economic Studies 33-95, Tel Aviv - the Sackler Institute of Economic Studies.
  8. Rasmus Lenz & Torben Tranæs, . "Job Search and Savings: Wealth Effects and Duration Dependence," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 01-10, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  9. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
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