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Women’s Labor Market Responses to their Partners’ Unemployment and Low-Pay Employment

Author

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  • Carina Keldenich
  • Andreas Knabe

Abstract

This paper revisits the added worker effect. Using bivariate random-effects probit estimation on data from the German Socio-Economic Panel we show that women respond to their partners’ unemployment with an increase in labor market participation, which also leads to an increase in their employment probability. Our analysis considers within- and between-effects separately, revealing differences in the relationships between women’s labor market statuses and their partners’ unemployment in the previous period (within-effect) and their partners’ overall probability of being unemployed (between-effect). Furthermore, we demonstrate that partners’ employment in low-paid jobs has an effect on women’s labor market choices and outcomes similar to that of his unemployment.

Suggested Citation

  • Carina Keldenich & Andreas Knabe, 2018. "Women’s Labor Market Responses to their Partners’ Unemployment and Low-Pay Employment," CESifo Working Paper Series 7377, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_7377
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    File URL: https://www.cesifo-group.de/DocDL/cesifo1_wp7377.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    added worker effect; labor supply; family economics; unemployment; low-pay employment;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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