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Couples' Labour Supply Responses to Job Loss: Growth and Recession Compared

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  • Mark Bryan
  • Simonetta Longhi

Abstract

We examine whether couples in the UK increase labour supply to cushion the fall in earnings from a job loss, comparing periods of growth and recession. We consider both male and female earners and various dimensions of labour supply adjustment. We find evidence of labour supply reactions, but they can be negative as well as positive, particularly at the extensive margin. During the recession, household reactions are either unchanged or couples increase their labour market attachment, with bigger positive reactions and smaller negative ones. People do not react in advance of job losses, suggesting that unemployment is a surprise.

Suggested Citation

  • Mark Bryan & Simonetta Longhi, 2018. "Couples' Labour Supply Responses to Job Loss: Growth and Recession Compared," Manchester School, University of Manchester, vol. 86(3), pages 333-357, June.
    • Handle: RePEc:bla:manchs:v:86:y:2018:i:3:p:333-357
    DOI: 10.1111/manc.12186
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    Cited by:

    1. Lluis, Stephanie & McCall, Brian, 2022. "Spousal labour supply adjustments to extended benefits weeks: Evidence from Canada," CLEF Working Paper Series 42, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    2. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Chi Ho Tang, 2020. "Why is the Hong Kong housing market unaffordable? Some stylized facts and estimations," ISER Discussion Paper 1081, Institute of Social and Economic Research, Osaka University.
    3. Giovanni Razzu & Carl Singleton, 2018. "Segregation and Gender Gaps in the United Kingdom's Great Recession and Recovery," Feminist Economics, Taylor & Francis Journals, vol. 24(4), pages 31-55, October.
    4. Selçuk Bedük, 2023. "Insured Privately? Wealth Stratification of Job Loss in the UK," Social Inclusion, Cogitatio Press, vol. 11(1), pages 135-147.
    5. Matías Ciaschi, 2020. "Job loss and household labor supply adjustments in developing countries: Evidence from Argentina," CEDLAS, Working Papers 0271, CEDLAS, Universidad Nacional de La Plata.
    6. Giovanni Razzu & Carl Singleton & Mark Mitchell, 2020. "On why the gender employment gap in Britain has stalled since the early 1990s," Industrial Relations Journal, Wiley Blackwell, vol. 51(6), pages 476-501, November.
    7. Julia Bredtmann & Sebastian Otten & Christian Rulff, 2014. "Husband’s Unemployment and Wife’s Labor Supply – The Added Worker Effect across Europe," Economics Working Papers 2014-13, Department of Economics and Business Economics, Aarhus University.
    8. Helen Kowalewska & Agnese Vitali, 2020. "Work/Family Arrangements across the OECD: Incorporating the Female-Breadwinner Model," LIS Working papers 769, LIS Cross-National Data Center in Luxembourg.
    9. Jan Gromadzki, 2019. "The Added Worker Effect, Employment Contracts, and the Reasons for the Wife’s Inactivity," IBS Working Papers 02/2019, Instytut Badan Strukturalnych.
    10. Emile Cammeraat & Egbert Jongen & Pierre Koning, 2023. "The added-worker effect in the Netherlands before and during the Great Recession," Review of Economics of the Household, Springer, vol. 21(1), pages 217-243, March.
    11. Bunn, Philip & Chadha, Jagjit & Lazarowicz, Thomas & Millard, Stephen & Rockall, Emma, 2021. "Household debt and labour supply," Bank of England working papers 941, Bank of England.
    12. Howard J. Wall, 2023. "Sex and the business cycle," Applied Economics, Taylor & Francis Journals, vol. 55(17), pages 1958-1971, April.

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