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The Response of Wivesf Labor Supply to Husbandsf Job Loss

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  • Miki Kohara

    (Associate Professor, Osaka School of International Public Policy (OSIPP))

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    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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    Bibliographic 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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    Related research

    Keywords: Added worker effects; Female labor supply; Within-family risk-sharing; Household panel data; Japan;

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    1. Josep Pijoan-Mas, 2003. "Precautionary Savings Or Working Longer Hours?," Working Papers wp2003_0311, CEMFI.
    2. 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, Wiley Blackwell, vol. 58(2), pages 277-97, April.
    3. 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.
    4. 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.
    5. Spletzer, James R, 1997. "Reexamining the Added Worker Effect," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 417-27, April.
    6. 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.
    7. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    8. 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.
    9. Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 533-49, October.
    10. 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.
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