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Job loss and household labor supply adjustments in developing countries: Evidence from Argentina

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  • Ciaschi, Matías
  • Neidhöfer, Guido

Abstract

Using longitudinal data for Argentina, we estimate the labor supply reaction of spouses and children to their husband's or father's job loss. Our findings show that job loss by the household head has a positive and significant impact on the labor supply of other household members. However, it increases the likelihood of spouses to switch to informal and downgraded employment, and of children to drop-out from education. While effects are stronger among vulnerable households, coverage of social security does not provide enough support in coping with unemployment shocks. Instead, we find that mothers' labor participation may prevent the educational drop-out of their daughters.

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  • Ciaschi, Matías & Neidhöfer, Guido, 2022. "Job loss and household labor supply adjustments in developing countries: Evidence from Argentina," ZEW Discussion Papers 22-041, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:22041
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    2. César, Andrés & Falcone, Guillermo & Gasparini, Leonardo, 2021. "Costs and benefits of trade shocks: Evidence from Chilean local labor markets," Labour Economics, Elsevier, vol. 73(C).

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    More about this item

    Keywords

    Job loss; Labor supply; Female labor participation; Educational enrollment; Educational drop-out; Human capital formation; Idiosyncratic shocks;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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