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Young people living as couples: How women's labour supply is adapting to the crisis. Spain as a case study

Author

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  • Addabbo, Tindara
  • Rodríguez-Modroño, Paula
  • Gálvez-Muñoz, Lina

Abstract

In this paper, we focus on the effects of the Great Recession on the decisions of young women regarding their labour supply. Considering the profound effect of the economic recession on the Spanish labour market, and in particular on the labour supply of young people, the focus of the empirical part of this paper is on Spain. Using EU-SILC 2007 and 2012 micro data for Spain, the labour supply models of women are estimated by age group, with a particular focus on the 20 to 29 and 30 to 39 age bands, in order to establish how young women living in couples exhibit different labour supply propensities according to their partner's labour market status. Correction is made for the non-random selection of women living in couples in the younger age groups. This first analytical step reveals a negative effect on the likelihood of forming a new household in the context of precarious employment conditions. Analytical results regarding the labour supply of women by age group confirmed a discouraging effect of young children on the labour supply of the youngest mothers, as well as a positive effect from being the owner of a house purchased under mortgage.

Suggested Citation

  • Addabbo, Tindara & Rodríguez-Modroño, Paula & Gálvez-Muñoz, Lina, 2015. "Young people living as couples: How women's labour supply is adapting to the crisis. Spain as a case study," Economic Systems, Elsevier, vol. 39(1), pages 27-42.
  • Handle: RePEc:eee:ecosys:v:39:y:2015:i:1:p:27-42
    DOI: 10.1016/j.ecosys.2014.10.003
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    References listed on IDEAS

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    Cited by:

    1. Paula Rodríguez-Modroño & Mauricio Matus López & Lina Gálvez-Muñoz, 2016. "Female labor force participation, inequality and household well-being in the Second Globalization. The Spanish case," Working Papers 16.02, Universidad Pablo de Olavide, Department of Economics, Quantitative Methods and Economic History.

    More about this item

    Keywords

    Labour supply; Great recession; Gender; Added worker effect; Discouraged worker effect; Young people labour supply;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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