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The Response of Wivesf Labor Supply to Husbandsf Job Loss

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Author Info
Miki Kohara (Associate Professor, Osaka School of International Public Policy (OSIPP))
Abstract

This paper examines how Japanese wives react to their husbandsf involuntary job loss, and tests the existence of complementarity of a wifefs labor supply to her husbandfs. Utilizing panel data on Japanese households from 1993 to 2004, we found that wivesf labor supply is stimulated when husbands suffer involuntary job loss. The detailed statistics show that not only do working wives raise their labor hours but also nonworking wives begin to participate in the labor market. The added worker effect is evident during the period of job insecurity in Japan following the mid-1990s.

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File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2008/DP2008E007.pdf
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Publisher Info
Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 08E007.

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Length: 26 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:osp:wpaper:08e007

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Postal: 1-31, Machikaneyama, Toyonaka, Osaka, 560-0043
Phone: +81-6-6850-6111
Web page: http://www.osipp.osaka-u.ac.jp/
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Related research
Keywords: Added worker effects; Female labor supply; Within-family risk-sharing; Household panel data; Japan;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  2. Orazio Attanasio & Hamish Low & Virginia Sánchez-Marcos, 2005. "Female Labor Supply As Insurance Against Idiosyncratic Risk," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 755-764, 04/05. [Downloadable!] (restricted)
  3. Mace, Barbara J, 1991. "Full Insurance in the Presence of Aggregate Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 928-56, October. [Downloadable!] (restricted)
  4. Fernandes, Reynaldo & de Felicio, Fabiana, 2005. "The Entry of the Wife into the Labor Force in Response to the Husband's Unemployment: A Study of the Added Worker Effect in Brazilian Metropolitan Areas," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 887-911, July.
  5. Josep Pijoan-Mas, 2006. "Precautionary Savings or Working Longer Hours?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(2), pages 326-352, April. [Downloadable!] (restricted)
    Other versions:
  6. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July. [Downloadable!]
  7. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January. [Downloadable!] (restricted)
  8. Paul Bingley & Ian Walker, 1996. "Household Unemployment and the Labour Supply of Married Women," Keele Department of Economics Discussion Papers (1995-2001) 96/20, Department of Economics, Keele University.
    Other versions:
  9. Cullen, Julie Berry & Gruber, Jonathan, 2000. "Does Unemployment Insurance Crowd Out Spousal Labor Supply?," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 546-72, July. [Downloadable!] (restricted)
  10. Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Blackwell Publishing, vol. 49(4), pages 533-49, October. [Downloadable!] (restricted)
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