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The added worker effect over the business cycle: evidence from urban Mexico

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  • Susan Parker
  • Emmanuel Skoufias

Abstract

This paper investigates whether the added worker effect is an important determinant of the increased labour force participation by women and whether the magnitude of the added worker effect differs between the peak and trough of the business cycle. Use is made of repeated observations from spouses in urban Mexico, collected during the Peso crisis (1994:4-1995:4) and during the period of economic prosperity (1998:4-1999:4). Significant added worker effects are found in both periods. The magnitude of the added worker effect during the crisis period is found to be twice as large as that observed during the period of economic prosperity.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 10 ()
Pages: 625-630

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Handle: RePEc:taf:apeclt:v:11:y:2004:i:10:p:625-630
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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 546-72, July.
  2. Emmanuel Skoufias & Susan Parker, 2006. "Job loss and family adjustments in work and schooling during the Mexican peso crisis," Journal of Population Economics, Springer, vol. 19(1), pages 163-181, February.
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Cited by:

  1. Kathryn Graddy & Jonathan Hamilton, 2014. "Auction House Guarantees for Works of Art," ACEI Working Paper Series AWP-02-2014, Association for Cultural Economics International, revised May 2014.
  2. Nidhiya Menon & Yana van der Meulen Rodgers, 2010. "Impact of the 2008-2009 Food, Fuel, and Financial Crisis On the Philippine Labor Market," Working Papers 17, Brandeis University, Department of Economics and International Businesss School.
  3. Menon, Nidhiya & van der Meulen Rodgers, Yana, 2011. "War and Women's Work: Evidence from the Conflict in Nepal," IZA Discussion Papers 6209, Institute for the Study of Labor (IZA).
  4. Bhalotra, Sonia & Umana-Aponte, Marcela, 2012. "Women.s Labour Supply and Household Insurance in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Grace H.Y. Leea & Jaai Parasnis, 2014. "Discouraged Workers in Developed Countries and Added Workers in Developing Countries? Unemployment Rate and Labour Force Participation," Monash Economics Working Papers 15-14, Monash University, Department of Economics.
  6. Sabarwal, Shwetlena & Sinha, Nistha & Buvinic, Mayra, 2010. "How do women weather economic shocks ? a review of the evidence," Policy Research Working Paper Series 5496, The World Bank.
  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, School of Economics and Management, University of Aarhus.
  8. Tamar Khitarishvili, 2013. "The Economic Crisis of 2008 and the Added Worker Effect in Transition Countries," Economics Working Paper Archive wp_765, Levy Economics Institute.
  9. Huang, Fung-Mey & Luh, Yir-Hueih & Huang, Fung-Yea, 2012. "Unemployment information and wives’ labor supply responses to husbands’ job loss in Taiwan," China Economic Review, Elsevier, vol. 23(4), pages 1176-1194.
  10. Shwetlena Sabarwal & Nistha Sinha & Mayra Buvinic, 2011. "How Do Women Weather Economic Shocks? What We Know," World Bank Other Operational Studies 10113, The World Bank.
  11. Sabarwal, Shwetlena & Sinha, Nistha & Buvinic, Mayra, 2011. "How Do Women Weather Economic Shocks? What We Know," World Bank - Economic Premise, The World Bank, issue 46, pages 1-6, January.

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