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Employment Constraints and the Labor Supply of Married Women: A Reexamination of the Added Worker Effect

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  • Tim Maloney

Abstract

Little evidence is found to support the "conventional" notion of the added worker effect. The husband's unemployment has no measurable impact on the wife's actual hours of work. However, the constraint on his ability to supply hours of work to the labor market, and not simply his unemployment, influences his wife's labor supply. Furthermore, the observed hours of work of the wife may not accurately reflect her "desired" hours of work. With these considerations the wife's labor supply is found to be positively associated with the unemployment and underemployment of her husband, and this added worker effect is estimated to be quite substantial.

Suggested Citation

  • Tim Maloney, 1987. "Employment Constraints and the Labor Supply of Married Women: A Reexamination of the Added Worker Effect," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 51-61.
  • Handle: RePEc:uwp:jhriss:v:22:y:1987:i:1:p:51-61
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    Citations

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    Cited by:

    1. Katrin Huber & Erwin Winkler, 2016. "All We Need is Love? Trade-Adjustment, Inequality, and the Role of the Partner," SOEPpapers on Multidisciplinary Panel Data Research 873, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. repec:ese:iserwp:2015-04 is not listed on IDEAS
    3. Ayhan, Sinem H., 2014. "How Do Married Women Respond When Their Husbands Lose Their Jobs? Evidence from Turkey During the Recent Crisis," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100387, Verein für Socialpolitik / German Economic Association.
    4. Basu, K. & Genicot, G. & Stiglitz, J., 2000. "Unemployment and Wage Rigidity when Labor Supply is a Household Decision," Papers 00-01-11, California Irvine - School of Social Sciences.
    5. 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.
    6. repec:unu:wpaper:wp2012-66 is not listed on IDEAS
    7. Bredtmann, Julia & Otten, Sebastian & Rulff, Christian, 2014. "Husband's Unemployment and Wife's Labor Supply – The Added Worker Effect across Europe," Ruhr Economic Papers 484, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Aysit Tansel & Zeynel Abidin Ozdemir, 2016. "Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada?," Working Papers 2016/3, Turkish Economic Association.
    9. Sezgin Polat & Francesco Saraceno, 2010. "Macroeconomic Shocks and Labor Supply in Emerging Countries: some Lessons from Turkey," Sciences Po publications 2010-36, Sciences Po.
    10. Melvin Stephens, 2002. "Worker Displacement and the Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 504-537, July.
    11. Umaña-Aponte, Marcela & Bhalotra, Sonia R., 2012. "Women's Labour Supply and Household Insurance in Africa," WIDER Working Paper Series 066, World Institute for Development Economic Research (UNU-WIDER).
    12. Johnsen, Julian V. & Vaage, Kjell, 2015. "Spouses’ retirement and the take-up of disability pension," Working Papers in Economics 03/15, University of Bergen, Department of Economics.
    13. Assaad, Ragui & Arntz, Melanie, 2005. "Constrained Geographical Mobility and Gendered Labor Market Outcomes Under Structural Adjustment: Evidence from Egypt," World Development, Elsevier, vol. 33(3), pages 431-454, March.
    14. Doreen Triebe, 2015. "The Added Worker Effect Differentiated by Gender and Partnership Status: Evidence from Involuntary Job Loss," SOEPpapers on Multidisciplinary Panel Data Research 740, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. repec:zbw:rwirep:0484 is not listed on IDEAS
    16. Jonathan Gruber & Julie Berry Cullen, 1996. "Spousal Labor Supply as Insurance: Does Unemployment Insurance Crowd Outthe Added Worker Effect?," NBER Working Papers 5608, National Bureau of Economic Research, Inc.
    17. Ayhan, Sinem H., 2015. "Evidence of Added Worker Effect from the 2008 Economic Crisis," IZA Discussion Papers 8937, Institute for the Study of Labor (IZA).
    18. Emmanuel Skoufias & Mauricio Santa María & Laura A. Ripani, 2007. "Cyclical Variations in Participation and Employment in Urban Labor Markets: the Case of Colombia and Mexico," COYUNTURA SOCIAL 012868, FEDESARROLLO.
    19. Sonia Bhalotra & Marcela Umaña-Aponte, 2010. "The Dynamics of Women’s Labour Supply in Developing Countries," The Centre for Market and Public Organisation 10/235, Department of Economics, University of Bristol, UK.
    20. Maurizio Bovi & Massimo Mancini, 2016. "Recessions, expectations, and labor supply dynamics," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 653-671, March.
    21. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09hc0476gk6 is not listed on IDEAS
    22. Cunningham, Wendy V., 2001. "Breadwinner or caregiver? - how household role affectslabor choices in Mexico," Policy Research Working Paper Series 2743, The World Bank.
    23. Chatterjee,Urmila & Murgai,Rinku & Rama,Martin G., 2015. "Job opportunities along the rural-urban gradation and female labor force participation in India," Policy Research Working Paper Series 7412, The World Bank.

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