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Unemployed couples: the labour market effects of making both partners search for work

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  • Richard Dorsett

Abstract

Summary. The paper evaluates the effect of a recent change to unemployment benefit in the UK which requires both partners in a couple (rather than just one) to search for work. The difference‐in‐differences estimator is extended in two ways. First, variations in when the change was implemented are exploited to test and adjust for bias resulting from differential trends among the control group. Second, the approach is combined with matching to relax functional form restrictions. After several months, positive effects on exiting from benefits were detected but effects on entry to jobs were less apparent.

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  • Richard Dorsett, 2005. "Unemployed couples: the labour market effects of making both partners search for work," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(2), pages 365-385, March.
    • Handle: RePEc:bla:jorssa:v:168:y:2005:i:2:p:365-385
    DOI: 10.1111/j.1467-985X.2005.00353.x
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    References listed on IDEAS

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    1. 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 546-572, July.
    2. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    3. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
    4. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
    5. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-348, July.
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    Cited by:

    1. Giorgio Di Pietro & Toni Mora, 2015. "The Effect of the L'Aquila Earthquake on Labour Market Outcomes," Environment and Planning C, , vol. 33(2), pages 239-255, April.
    2. Giorgio Di Pietro & Toni Mora, 2015. "The effect of the L’Aquila earthquake on labour market outcomes," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 33(2), pages 239-255, April.
    3. Franz Buscha & Arnaud Maurel & Lionel Page & Stefan Speckesser, 2007. "The Effect of High School Employment on Educational Attainment : A Conditional Difference-in-Differences Approach," Working Papers 2007-40, Center for Research in Economics and Statistics.

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